Comments on: Is the amount taxable on maturity invested in Mutual Funds? http://investing.hirby.com/is-the-amount-taxable-on-maturity-invested-in-mutual-funds/ Thu, 09 Feb 2012 00:24:06 -0800 http://wordpress.org/?v=2.8.5.2 hourly 1 By: Gyan Guru http://investing.hirby.com/is-the-amount-taxable-on-maturity-invested-in-mutual-funds/comment-page-1/#comment-21314 Gyan Guru Sat, 26 Dec 2009 03:59:07 +0000 http://investing.hirby.com/is-the-amount-taxable-on-maturity-invested-in-mutual-funds/#comment-21314 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 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

]]> By: VaTreasures http://investing.hirby.com/is-the-amount-taxable-on-maturity-invested-in-mutual-funds/comment-page-1/#comment-21313 VaTreasures Sat, 26 Dec 2009 03:59:06 +0000 http://investing.hirby.com/is-the-amount-taxable-on-maturity-invested-in-mutual-funds/#comment-21313 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. 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.

]]>