Purchase of mutual funds units

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2014 Sir, kindly suggests on purchase of Mutual Funds units, as follows:-
1. What is the limit of maximum amount to invest in Mutual Funds units by an individual?
2. Is interest/dividend earned on Mutual funds units are taxable or exempt?
3. Is Mutual funds units are relevant for tax benefit for example equity or debt based etc.
4. Under which section, investment in mutual funds are covered?

Rupesh Jain

Rupesh Jain (Expert)
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26 May 2014 1. there is not limit of purchases of MF UNIT.PAN required for purchase of Mf unit at present upto rs. 50,000-00 w/o PAN you can purchases.
2. exemption depend on nature o MF due to some MF for tax saving deduction u/s 80C.
other are taxable under the income head.
3. see 2 above
4. if it is tax exempt for income tax then deductible u/s 80C
some mutul fund those equited oriented hold by you more that one year then they exempt 10(38).
if these are otherwise equited oriented they taxable under long term Capital Gain and indexation benefit you can get.

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