Mutual Funds

Tax benefits of investing in Mutual Funds

Mutual Funds require withholding capital gain tax (CGT) as per below:

  • 10% for less than 6 months holding
  • 8% for 6 to 12 months holding
  • Zero for more than 12 months holding

Corporate Entities

Tax savings of 25%-35% as compared to bank deposits

Individuals

Tax savings of 0-10% as compared to bank deposits

Tax Credit on investment amount of upto Rs. 1,000,000/- in open end funds if the investment remains for two years (e.g. Tax rebate of Rs.148, 500/- calculated on Rs. 5 mn annual income and investment amount of Rs. 1 mn)