Moneycontrol
Last Updated : Jul 25, 2018 09:25 AM IST | Source: Moneycontrol.com

5 tax implications of mutual fund investments that you should be aware of while filing ITR

If you are a mutual funds investor, one of the important things to understand is the tax implications on your investments. Investment in mutual funds comes with various tax provisions. While you can claim up to Rs 1.5 lakh deduction for investment in ELSS scheme during the financial year, here are five of them which needs to be kept in mind:

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Be conscious of declaring any dividend income if received from mutual fund dividend schemes.
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Be conscious of declaring any dividend income if received from mutual fund dividend schemes.

Any long-term capital gains booked in equity MF will be exempt from income tax only till March 31, 2018.
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Any long-term capital gains booked in equity MF will be exempt from income tax only till March 31, 2018.

Benefit of indexation on their original debt fund investment means that the original investment is adjusted for the price of inflation and taxed accordingly.
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Benefit of indexation on their original debt fund investment means that the original investment is adjusted for the price of inflation and taxed accordingly.

The short-term capital gains arising out of the sale of debt mutual fund before three years are taxed according to your tax slab.
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The short-term capital gains arising out of the sale of debt mutual fund before three years are taxed according to your tax slab.

Remember to declare any short or long-term gains out of your liquid fund investments – especially due to rapid growth in instant redemption liquid fund products, there may be a significant number of retail investors who need to be cognizant of this point. (Text by Ajit Narasimhan, Chief Marketing Officer, Sundaram Mutual. All images are in public domain and available on pexels.com)
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Remember to declare any short or long-term gains out of your liquid fund investments – especially due to rapid growth in instant redemption liquid fund products, there may be a significant number of retail investors who need to be cognizant of this point. (Text by Ajit Narasimhan, Chief Marketing Officer, Sundaram Mutual. All images are in public domain and available on pexels.com)

First Published on Jul 25, 2018 09:25 am
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