Mutual funds offer higher returns than other schemes. If you withdraw money before maturity at the time of need, then you will have to pay the prescribed tax on it.
Many people invest in mutual funds for better returns, which can be used when needed. In this era of Corona crisis, many people are withdrawing money from mutual funds, if you are also one of them, then it is very important for you to know some things before Vidra. Because before Mutual Fund Withdrawal, it is charged with Income Tax, which are determined on the basis of different mutual funds.
According to experts, mutual funds are mainly divided into two parts. The first part consists of equity oriented funds and the second consists of all other mutual funds. If you are a mutual fund manager investing 65 per cent of the fund amount in a domestic company listed on the stock market, then it is included in the equity oriented scheme.
What are the types of mutual funds
Generally, mutual funds are of two types, which include equity and other funds. The second category consists of long term debt, liquid, short term debt, income funds, government securities, fixed maturity plans. Gold ETF, Gold Savings Fund, International Fund are also included in this.
Know how much tax to pay in the short term
Taxes are taken in two ways in STCG i.e. Short Term Capital. Equity Oriented Scheme attracts 15% tax. While tax is to be paid on the profits from the second category of funds. For example, if your tax slab is 30 percent, then you will have to pay tax according to 30 percent.
Tax up to one lakh is free on log term
Long term capital gains of up to 1 lakh are tax free on equity oriented scheme of mutual funds. At the same time, if the amount is more than one lakh, then 10% income tax will be levied. However, if you have filled STT (Securities Transaction Tax) in it, then you can get some rebate.
Dividend is also taxed
Earlier, investors were not required to pay any tax on dividends. But as per the amendments made in the Union Budget 2020, now dividends received by investors are added to their taxable income and taxed at their respective income tax slab rates.
Also read: These IT companies will give big relief to people among Corona, more than 1 lakh recruitments are going to be made
Do business of Oxygen Cylinder in Corona era, know every information from earning to starting business