Do mutual fund investments attract wealth tax?
No. Under the Wealth Tax Act, all financial assets, including mutual fund units are exempt totally from Wealth Tax. TOP If I gift mutual fund units, does it attract gift tax? If I gift mutual fund units, does it attract tax? Is my income from mutual funds exempt from income tax? Yes. Your income from mutual funds in the form of dividends is entirely exempt from income tax provided the fund in question is a equity/growth fund where more than 50 percent of the portfolio is invested in equities. Please note that in the current Union Budget 2000, the tax on debt funds has been increased from 10 percent to 20 percent. What are my major rights as a unitholder in a mutual fund? Some important rights are mentioned below: • Unit holders have a proportionate right in the beneficial ownership of the assets of the scheme and to the dividend declared. • They are entitled to receive dividend warrants within 42 days of the date of declaration of the dividend. • They are entitled to receive redemption
