Taxation on Mutual Funds Return: The Indian stock market has been in decline for a long time. Today, on Monday, the first day of the week, a big decline is being seen in the market. Due to this ongoing decline in the stock market, investors have suffered losses worth lakhs of crores of rupees. Due to this ongoing decline in the market, the mutual fund portfolio of investors is also being adversely affected. However, despite this loss, mutual fund investors are investing heavily. For some time now, the number of women investing in mutual funds has also been increasing rapidly.
It is important to know well about tax rules
While on one hand, employed women in the country are investing in mutual funds, on the other hand many men are investing in the name of their wives. If you are also planning to invest in mutual funds in your wife’s name through SIP, then you should know the tax rules thoroughly.
Capital gains tax has to be paid on the returns received from mutual funds.
Capital gains tax has to be paid on the returns received on investments made through mutual fund SIP. Capital gains taxes are classified in two ways. If you withdraw money by selling your equity mutual fund units within a year, you will have to pay short term capital gains tax of 20 percent. If you withdraw money after 1 year, you will have to pay long term capital gains tax of 12.5 percent. You have to pay tax on debt funds as per the tax slab.
What are the rules according to tax slab?
In case of mutual funds, tax rules are the same for both men and women. According to the New Tax Regime, the annual income of women up to Rs 3 lakh is tax free. According to the Old Tax Regime, the annual income of women (below 60 years) up to Rs 2.5 lakh is tax free.
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