Mutual fund taxation rules – How gains, dividends are taxed in 10 points2 min read 15 Sep 2018, 08:46 AM IST
The capital gains tax on mutual fund returns depend on which type of fund it is equity or debt. Similarly, the tax on dividend from mutual funds also depend on fund type.
The assets under management of Indian mutual fund industry has crossed ₹ 25 trillion mark. As on August 31, 2018, the asset base stood at ₹ 25.2 trillion, according to data from AMFI or Association of Mutual Funds in India. The income tax rules on mutual fund gains and dividends depend on the type of fund — debt or equity — and the duration of investment. The growth in the Indian mutual fund industry is also being driven by SIP or systematic investment plan accounts through which investors invest regularly in fund schemes. The total amount collected through SIPs during August 2018 was ₹ 7,658 crore and the number of SIP accounts stood at 2.38 crore.
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