What are the tax benefits from investing in a mutual fund?
Taxes don’t leave you wherever you make money. But there are smart ways to deal with it. Best be informed. The tax benefits for investing in mutual funds are as follows: Sec 88 of the I.T. Act Twenty percent of the amount invested in specified mutual funds (called equity linked savings schemes or ELSS) is deductible from the tax payable by the investor in a particular year subject to a maximum of Rs2000 per investor. Section 54EA and 54EB of the I.T. Act. Under Section 54EA of the I.T. Act, investment of the entire or part of the net consideration obtained from the transfer of long-term capital assets for a period of three years in mutual fund units, exempts the asset holder from paying capital gains tax. Under Section 54EB of the I.T. Act, investment of the entire or part of the capital gains obtained from the transfer of long-term capital assets for a period of seven years in mutual fund units exempts the asset holder from paying capital gains tax. Sec 115R of the I.T. Act The mutual
