Dear Sir,
I wanted to know that in case of mutual funds which are debt oriented, is indexation allowed on them once they are reedemed.
3 Replies
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 23 June 2014
any income from mutual fund units are exempt from tax. so there is no question of indexation.
Mihir
(Wealth Manager)
(5293 Points)
Replied 24 June 2014
If it is debt funds, then it will attract capital gains. STCG at income tax slab if sold within 1 year, LTCG at 20% if sold after 1 year.
Wait for more replies.
Arpit Pachisia
(CA)
(734 Points)
Replied 24 June 2014
Hello Gaurav,
Debt oriented mutual funds which are hold for a period less than 365 days is classified as Short term and these are taxed as per the income tax slab of the individual based on his total income.
Wherease, in case of long term holding, these are taxable as follows:
1. 10% without indexation.
2. 20% with indexation.
w.e is LESS. plus education cess 3%.
However, dividend income is exempt (tax free) in the hands of investors.
Thanking you
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