Tax on Long term gains in mutual funds in India
Confused whether tax is calculated on the profit made or on the maturity amount? Looking out for this calculation to understand the long term tax gain in Indian mutual funds? Resolve your confusion by going through the responses from our ISC experts and get to know the exact formulae for calculation.
Suppose I start an SIP of Rs 5000 per month in 2019 for 20 years. The amount invested will be 12 lakhs.
If the total maturity amount is 50 lakhs then how will the tax be calculated?
The profit of 38 lakhs is over a period of 20 years.
Will the tax be calculated on 38 lakhs or only on the profit made in the year the maturity amount was redeemed?
If the total maturity amount is 50 lakhs then how will the tax be calculated?
The profit of 38 lakhs is over a period of 20 years.
Will the tax be calculated on 38 lakhs or only on the profit made in the year the maturity amount was redeemed?