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Sunday, December 04, 2016

Balanced Mutual Funds and Income Tax..!

by Mr. Srikanth Meenakshi, FundsIndia.com

Balanced mutual  funds (MFs) are equity-oriented hybrid mutual funds. They invest in both the equity & debt markets, but invest more in the former (hence the equity-oriented).

From a income taxation perspective, funds that invest at least 65% in domestic stocks qualify for treatment as equity funds (capital gains after 1 year of holding are tax exempt).
 
Srikanth Meenakshi,
 
FundsIndia.com
Mutaual fund managers of balanced funds always maintain at least 65 % of their investments in domestic stocks for this specific purpose. They are always treated on par with equity funds for taxation purposes.

So, short-term gains (holding period of less than one year) are taxed at 15 % (plus surcharge & cess bringing it up to 17 %) and long-term gains (more than a year) are income tax-exempt.

About Srikanth Meenakshi

Srikanth Meenakshi

Founder and Director at FundsIndia.com

Balanced Mutual Funds and Income Tax..! Reviewed by S. Chitra on December 04, 2016 Rating: 5 by Mr. Srikanth Meenakshi,  FundsIndia.com Balanced mutual  funds (MFs) are equity-oriented hybrid mutual funds. They invest in both th...

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