Are all mutual funds tax saver?

Is Mutual Funds tax Saver?

Mutual funds, also known as Equity Linked Savings Scheme (ELSS), are great tax-saving instruments under Section 80C of the Income Tax Act, 1961. This section allows you to claim benefits from your taxable income if you put your money into certain investments.

Does all mutual funds are tax free?

Long term capital gains upto Rs 1 Lakh is totally tax free. … Mutual fund tax benefits under Section 80C – Investments in Equity Linked Savings Schemes or ELSS mutual funds qualify for deduction from your taxable income under Section 80C of the Income Tax Act 1961.

How do I know if a mutual fund is tax saver or not?

An ELSS is a mutual fund class that offers tax deductions under Section 80C of the Income Tax Act, 1961. To check if a fund is an ELSS or not, you need to check for its details on the fund house’s website.

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Does all mutual fund comes under 80C?

ELSS mutual funds are the only class of mutual funds that are covered under Section 80C of the Income Tax Act, 1961. By investing in an ELSS, you are entitled to claim a tax rebate of up to Rs 1,50,000 a year.

Which is best tax saver mutual fund?

The table below shows the top-performing ELSS mutual funds based on the past five year returns:

Mutual fund 5 Yr. Returns Min. Investment
Canara Robeco Equity Tax Saver Fund 19.62% ₹500
Mirae Asset Tax Saver Fund 21.56% ₹500
DSP Tax Saver Fund – Direct Plan – Growth 18.09% ₹500
JM Tax Gain Fund – Direct Plan – Growth 19% ₹500

How do I avoid capital gains tax on mutual funds?

6 quick tips to minimize the tax on mutual funds

  1. Wait as long as you can to sell. …
  2. Buy mutual fund shares through your traditional IRA or Roth IRA. …
  3. Buy mutual fund shares through your 401(k) account. …
  4. Know what kinds of investments the fund makes. …
  5. Use tax-loss harvesting. …
  6. See a tax professional.

How much tax do you pay on mutual fund withdrawals?

Most people pay the 15% rate or 0%. Short-term gains are taxed as ordinary income. Stock funds sometimes make distributions, and that could be dividends or simply gains from sales of stock; in the former case, they can be taxed at the long-term capital gains rate.

How is tax calculated on mutual funds?

How to Calculate the Payable Tax against Long Term Capital Gains on Mutual Funds?

  1. Full value of consideration: Rs. 3 Lakh.
  2. Cost inflation index or CII for the mentioned year – 280 , hence the indexed cost of acquisition is Rs – 50,000 X (280/100) = Rs. 1,40,000.
  3. The total taxable gain is Rs. 3 Lakh – Rs. 1,40,000 = Rs.
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Is Axis Bluechip fund tax saver?

This is a diversified fund that will invest across sectors and industries. The main purpose that it serves is helping you in availing tax deductions under Section 80C of Income Tax Act, 1961.

Investment Ideas:

3 Years 10.12
5 Years 11.05
10Years 14.14
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Which mutual fund is best?


Scheme Name Plan Category Name
Mirae Asset Emerging Bluechip Fund – Direct Plan – Growth Direct Plan Large & Mid Cap Fund
SBI Large & Midcap Fund – Direct Plan – Growth Direct Plan Large & Mid Cap Fund
Large Cap Fund
Canara Robeco Bluechip Equity Fund – Direct Plan – Growth Direct Plan Large Cap Fund

How do I redeem my tax saver mutual fund?

How to Use the Redeemed Amount? Post the three-year period you can choose to withdraw your investment in the form of liquid money and then invest the amount in another ELSS and continue to reap benefits.

Which mutual funds are exempt from income tax?

1.Tax saving equity funds

An investment made under ELSS (Equity Linked Savings Schemes) qualifies for tax exemption under section 80C. The total savings under 80C that qualifies for exemption is Rs. 1.5 lakhs (max). Apart from ELSS, other payments like LIC, PF, Children’s school fees, etc also qualify.

Can I withdraw ELSS after 3 years?

You always have the option of investing in Public Provident Funds or Fixed Deposits if you want to reduce your taxable income. … An ELSS investment has a lock-in period of just 3 years, which means that you can withdraw your funds from the scheme after the three year term of your investment is completed.

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Is EPF tax free?

As per the notification, issued on August 31, contributions above ₹2.5 lakh in the Employee Provident Fund (EPF) per year will be taxed. In cases where there is no employer contribution in the EPF account, the threshold will be ₹5 lakh a year.