can anyone suggest me treatment of MUTUAL FUNDS on purchase,every year treatment,and on maturity ??
while preparing income tax return..
4 Replies
pushpendra
(Director- FinMAT Consultants)
(1703 Points)
Replied 21 February 2008
there are Two type of Mutual fund 1 is on tax benefit is availabe on other one on which tax benefit is not available.
--- on Purchase -- if 1st type then you can claim exemption in the yr. or purchase ( But there is lock in for 3 years) --- and other than this there is no tax benefit is available and no lock in perod.
------- Every year --- if Dividend is received --- Div. is not taxable under income tax act.
--- Year of maturity -- MF is not taxable
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 22 February 2008
Because that dividend is exempted u/s 10(32) of income tax act..puspendra yar .. in short you give very good discripttion...just i would like to say you one thing this are not the types ( tax and non tax) they are benefits.. Mutual funds are closed fund .. open funded these are the types but still good job yar
Saroj Rana
(MBA Finance)
(417 Points)
Replied 25 February 2008
Hi Amit,
Good Job
I would like to say one more thing if you sell a mutual fund with in 1 year (after purchase0 it will attract Tax
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