Tips on how to manage income tax on earnings from mutual funds
As long term capital gains on equity are exempt up to one lakh every year, you can look to book minimum of 1 lakh long term capital gain on equity schemes for each of your family members
Income from mutual fund can be categorised into two streams: Dividends and appreciation when realised is taxed as capital gains. The mutual fund schemes can be divided into two categories for tax purposes. In first category, fall all equity oriented scheme and rest of the schemes fall in the second category.