What are the tax provisions for Mutual Fund Units?
The following is the Tax Status in respect of Units of Mutual Funds:
Surcharge for Resident Indians, Domestic Companies and NRIs:
Education Cess:
Abbreviations used:
Gift Tax: Mutual Fund units are exempt.
Wealth Tax: Mutual Fund units are exempt.
However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units.
Why should you invest in ELSS ?
Excellent returns: Historical Returns from ELSS have been very attractive. You will discover that these returns have been much higher than other traditional tax-saving instruments. ELSS Schemes also have the shortest lock-in period compared to any other tax-saving instruments in India.
Safety: Due to the 3-year lock-in period, the Investment Manager can take a long-term view to invest the funds in equity. The real potential of equities shows up only after a few years. The manager is not under pressure to take risky, aggressive investment decisions to deliver short-term returns
Tax-free income: The dividends you earn will be tax-free. When you sell the units of ELSS, you can avail of long-term capital gain under the Income Tax Act, which is exempt from tax.
Systematic Investment Plan: You can invest as less as Rs 500 at regular intervals. You take advantage of fluctuations in the stock markets by rupee-cost averaging.
How does SystematixGroup help you?
With several schemes in the market today, selecting the right scheme can be quite a task. We at SystematixGroup provide you with detailed information on every Mutual Fund scheme to help you shortlist the best ones. You can also compare peer schemes, see top performing schemes across types and decide where to invest with just a click of a button.
We offer the facility of Systematic Investment Plans (SIP).
We also spare you of the hassles of searching for an application form, filling it up and writing cheques. This ensures you don’t miss any opportunities. So what are you waiting for? Take the first step to start your journey towards building wealth. Just fill in your contact details. Our representative will be in touch shortly