Mutual Fund taxes

POSTED BY rajan.panchal24 ON June 6, 2012 8:52 pm COMMENTS (3)

I want to know how various taxes in MFs are paid to IT dept? Do they deduct directly at the time of redemption or the onus is on us to calculate and pay the taxes accordingly?? how do I fill the IT return if I have done investments in MF/Shares and redemptions in MF/Shares?


3 replies on this article “Mutual Fund taxes”

  1. says:

    Thanks Ashal,
    but how do I pay my taxes and when?
    What if I made a mistake in calculating the taxes?? Who verifies that whether I correctly or not?

    1. Dear Rajan, You can get the capital gains calculation from AMC or fund registrar itself if you are doubtful of your own calculations. Once the calculations are with you, you can pay tax online from your netbanking account.



  2. Dear Rajan, the taxation ‘ll depend upon the type of fund say Eq. or Debt or Gold & the type of scheme say Growth, Dividend.

    In case of Eq. fund, STCGs are subject to tax @ 15.45% rate but TDS is not applicable hence onus lies on the investor to pay tax.

    LTCGs from Eq. funds are tax free.

    In case of STCGs from Debt or Gold or Hybrid fund where Eq. component is less than 65% , again the same is taxable but investor is liable to calculate & pay tax for RIs. In case of NRIs, AMC itself ‘ll deduct tax & deposit the same to Govt.

    In case of LTCGs from the above funds, again the same is taxable although at a different rate of tax than STCG Tax rate but rest things are similar to STCG taxation.

    Dividends received by investors are tax free irrespective of the funds but in the depth there is a difference again between eq. & non Eq. funds – Dividends from Eq. funds is totally tax free where as in case of Debt funds or non Eq. funds, the Dividends are liable to DDT & this DDT ‘ll be paid from the funds’ corpus itself by the AMC thus investor ‘ll receive tax free dividends.



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