TREATMENT OF MUTUAL FUNDS

there are Two type of Mutual fund 1 is on tax benefit is availabe on other one on which tax benefit is not available. --- on Purchase -- if 1st type then you can claim exemption in the yr. or purchase ( But there is lock in for 3 years) --- and other than this there is no tax benefit is available and no lock in perod. ------- Every year --- if Dividend is received --- Div. is not taxable under income tax act. --- Year of maturity -- MF is not taxable

Because that dividend is exempted u/s 10(32) of income tax act..puspendra yar .. in short you give very good discripttion...just i would like to say you one thing this are not the types ( tax and non tax) they are benefits.. Mutual funds are closed fund .. open funded these are the types but still good job yar

thanks amit

Hi Amit, Good Job I would like to say one more thing if you sell a mutual fund with in 1 year (after purchase0 it will attract Tax