Hi
I want to know whether the amount i invested in is taxable on Maturity?
I mean if i get 20000 return after 2 year then it is taxable or not?
Reply
Atul

 

  • VaTreasures 8:59 pm on December 25, 2009 Permalink

    You need to figure out your basis and subtract it from the proceeds when you sell your mutal fund. You may have had to pay taxes on profits for the mutual fund while you owned it. You add these profits to your purchase price to compute the basis.

    The previous "advice" is incorrect about long term capital gains(more than one year) being tax free. The benefit to long term capital gains is that they are taxed at a lower rate(15% or 5%) rather than the rate of your ordinary income.

  • Gyan Guru 8:59 pm on December 25, 2009 Permalink

    All the incomes coming from the investments exceeding one year are tax-free. But from the next financial year onwards, they are going to be taxable. So be ready for it in the next financial