Stamp duty on mutual funds to apply from 1 July: what it means for you
The implementation of the stamp duty was initially slated for January but was postponed first to April and then to July.
The stamp duty will apply to all kinds of mutual fund purchases, including lump sum, SIP, STP and dividend reinvestment.
From 1 July 2020, stamp duty will be imposed on the purchase of mutual funds, including systematic investment plans (SIPs) and systematic transfer plans (STPs), but not on the redemption of units. The duty will apply to all mutual funds—debt as well as equity. However, its impact will be felt the most on debt funds, which are typically held for short periods, as we explain below.