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Filing income tax on mutual fund investments? Note these 10 things
With the financial year coming to a close in a few short months, many might rush to hand in their investments.
Mutual fund investments have been growing in number year on year. Taxpayers use them as tax saving instruments to help reduce the impending tax burden.
However tax liability on mutual funds need to be addressed as well.
To put it simply ‘whenever there will be income, there will be tax,’ says tax solutions website, ClearTax.
“Even though you can minimise the tax that you pay, there is no escaping it. The gains that you earn from your mutual fund investments are also a form of income (capital gains) and they too are taxed (capital gains tax). The taxation on mutual fund gains vary as per the holding period and depending on the type of mutual fund,” a report by ClearTax said.
Asset under management of Indian mutual fund industry has grown from Rs 5.87 lakh crore as on 31st March, 2012 to Rs 21.41 lakh crore as on 31st October, 2017, a media report said.
With the financial year coming to a close in a few short months, many might rush to hand in their investments but here are 10 things about income tax rules pointed out in the report that you need to know.