Is there tax on mutual funds ?

[Dev_Sharma987]

Hi i have a doubt on mutual funds. Suppose i invest in a high return mutual fund with a yearly premium fund of 20000. At the end of 5 year term, i earn total 290000. Now will this be taxed.

If so,
what is the slab rate for the tax ? Also does the tax depend on the type of the fund that is equity fund, tax based fund etc.

Can anyone shed light on this matter.

 

[jumbo2010]

Hey, I do not have much information about that but I think there is tax on everything.

 

[taurus27]

The treatment of equity and debt funds are different.

If you sell the fund less than an year of holding, you have to pay short term capital gains at 10%
If you sell after 1 year, then it is long term capital gains and no tax (at present - this may change once the direct tax code is implemented)

And you have to also pay Securities transaction tax @0.125% on the sale vale, this will be deducted by the fund house before the payout.

 

[comm4300]

Hi i have a doubt on mutual funds. Suppose i invest in a high return mutual fund with a yearly premium fund of 20000. At the end of 5 year term, i earn total 290000. Now will this be taxed.

If so,
what is the slab rate for the tax ? Also does the tax depend on the type of the fund that is equity fund, tax based fund etc.

Can anyone shed light on this matter.

yearly premium ???

there is no yearly premium for mutual fund investments. There's lumpsum investment and SIP investment:
and wrt to mf investment :
as of now.....
any investment in equity mutual fund is exempt from tax if held for more than 1 year of purchase.