Comprehensive Discussion On Investment Made In Mutual Fund & Its Taxability (Equity/Debt)



Quick Summary
This article clarifies the tax implications of mutual fund investments, distinguishing between equity and debt funds. It explains that only investments in Equity Linked Saving Scheme (ELSS) qualify for Section 80C deductions, up to a limit of Rs. 1,50,000. The taxability of gains depends on the fund type and holding period, with different rules applying to equity and debt funds, especially after April 1, 2023.

It has always been the point of discussion while deciding the eligibility of investment made in Mutual funds for claiming deduction under Sec 80C of the Income Tax Act and also to calculate its taxability at the time of redemption. It should be noted that taxation of Mutual fund depend upon its type whether it is equity oriented fund or Debt oriented fund. Further, just by making investment in equity oriented mutual fund or equity related instruments dont allow the investor to claim benefit u
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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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Chartered accountant

Practicing Chartered Accountant since November 2018

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