Tax benefits of investing in Mutual Funds

Capital Gains Tax is calculated at the rates given below:

Category

Stock Fund

MM/ Income/ other Funds and REITs

 

Filer

Non-Filer

Filer

Non-Filer

Company

10%

10%

25%

25%

Individuals/ AOPs

10%

10%

10%

15%

For stock fund only:

  • If dividend income is > Capital Gain, Tax rate will be 10%
  • If dividend income is < Capital Gain, Tax rate will be 12.5%

Capital gain is exempt if units are held for more than 4 years.

 

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)

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