What are all the tax Implications with reg. to Mutual fund investments in India?

Question

Ineed to know the details with reg. to
1. Income Tax implications - with reg. to investments in Mutual funds
2. Income tax implications - with reg. to income from investments in Mutual funds
3. Wealth Tax implications with reg. to Investments in Mutual funds
4. Gift Tax implications with reg. to making gifts of Mutual fund bonds to others.

Answer 1

All Mutual Fund earnings, which are exempt from Income Tax. However, if the earnigs are short term then you will have to shell out short term capital gain which @ 10% of the gain. This will be automatically calculated when you redeem your units.

Answer 2

Tax implications of Mutual Funds.

1.) Purchase of ELSS Funds
- Investment amount is eligible for rebate u/s 80C.

2.)
Redeeming an Equity Fund held for > 1 year.
-No capital gain tax.
-You pay only STT.

Redeeming an Equity Fund held for < 1 year.
-You pay Capital gain tax + surcharge + cess @ 11.22% + STT.
Or
-Capital gain tax + cess @ 10.2% + STT
(depending on your taxable income).


Redeeming a Dept Fund held for > 1 year.
-You pay capital gain tax @ 10% ( without indexation ).
Or
-You pay capital gain tax @ 20% ( with indexation ).
Whichever is less.
Indexed or inflated purchase cost = Purchase cost X Present Index / Purchase Index

Redeeming a Dept Fund held for < 1 year.
-You pay tax on capital gain at the personal tax rate applicable to you

Mutual Fund dividends are tax free.

Answer 3

As far as investment in Equity Mutual Funds are concerned,there are two tax implications
1. Investment period less than one year-Short term capital gain-10%
2. Investment period more than one year-Long term capital gain=Nil

Answer 4

fairness orientated mutual money are charged as follows for a era of funding of a lot less then a million year 10% (commerce tax) for a era of >a million year nill All divedends are tax free