Invest Indias : Investing Ideas

Tax on the Indian mutual fund is divided into Two categories Tax on Equity Mutual Fund If the investment is done for more than 1 year before withdrawal, then it will fall under Long Term Capital Gain. The tax will be 10% on the profit exceeding Rs-1 lakh. If the investment is done for less than 1 year before withdrawal, it will fall under Short Term Capital Gain. The tax would be flat 15% on the profit. Tax on Debt Mutual Fund If the investment is done more than 3 years before withdrawal, it will fall under Long Term Capital Gain. The tax would be 20% on the profit after indexation (indexation consider inflation and hence the effective tax will be less than 20%). If the investment is done less than 3 years before withdrawal, it will fall under Short Term Capital Gain. The tax would be deducted according to your tax slab. Note: If the mutual fund has more than 65% allocation in equities, it will fall under equity mutual fund. Let’s first understand the tax on equity mutual fund- Case 1

Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. Income tax is the source of revenue for Government. there are two types of taxes one is personal income tax and another one is corporate tax. Personal Income tax  Personal income tax is levied on an individuals wages, salaries and other types of income. Corporate Income tax Business income taxes apply to corporations, partnerships, small businesses, and people who are self-employed. In this article we will be focusing on only Personal Income Tax  Income Tax Slab In India, where all the individuals earn an income in very large and diversified range, levying a tax on all individuals at a specific rate would not be a fair policy. The Act, therefore, segregates income ranges and levies tax at different rates as per the segregation. These groups are thus known as tax slabs. The slabs also vary based on age if the taxpayer is an individual and as per the classifica