Any funds that invest less than 65% of the corpus into equity or equity-oriented investments are technically classified as debt funds or debt-oriented funds.
Debt is the major market in which people invest their hard-earned money to make profits. Considered to be less risky than equity investments, many investors with a lower risk tolerance prefer buying in debt securities. However, debt investments offer lower returns as compared to equity investments.
Debt funds are not just for adding safety and security to your portfolio, but they also come with some tax benefits, especially if held for long-term. Moreover, with the indexation benefit, it can further reduce your tax burden, making them an essential part of your portfolio. However, it is essential to know how these funds are taxed.
Debt funds are highly recommended to investors with lower risk tolerance. Debt funds usually diversify across various securities to ensure stable returns. Hence, low-risk investors find them ideal. Debt funds are also available for - Short-term investors (3-12 months) & Medium-term investors (3-5 years).
This eBook contains details about Capital Gain taxation of Debt Mutual Funds as well as Dividend Taxation on Debt Mutual Funds. Concept is explained with more than 10 different EXAMPLES on various scenarios. eBook also talks about how the Capital Gain works if the investor is below the Basic Exemption limit of Income Tax in detailed manner. All the numbers & rules are based on 2018-19 and 2019-20 Financial Year taxation.
Pages - 31
Debt Mutual Funds and Its Types
Understanding Of Terms and Definitions
Capital Gain Tax Calculations of Debt Mutual Funds
Debt MF Capital Gain Taxation - For Tax Exemption Individuals
Calculations of Capital Gain on Sale of Debt Mutual Funds
Calculation of Short-Term Capital Gain
Calculation of Long-Term Capital Gain
Frequently Asked Questions (FAQs)
Taxation on Dividends of Debt Mutual Funds - Debt Mutual Fund Dividend Taxation
Dividend Pay-out Option
Dividend Reinvestment Option
Taxation on Debt Mutual Funds Vs Fixed Deposits
Invest Yadnya offers many resources for the Debt Mutual Fund Taxation - Capital Gain & Dividend. We provide similar ebooks on various other Mutual Funds like DSP Focus Fund - Focused Category, Franklin India Focused Equity Fund - Focused Category, AXIS Focused 25 Fund– Focused Category, IDFC Focused Equity Fund - Focused Category & many more.
Thus, this Debt Mutual Fund Taxation - Capital Gain & Dividend book will offer you a thorough analysis of the mutual fund. Through this Debt Mutual Fund Taxation - Capital Gain & Dividend ebook, you will get a fair insight into the company’s market allocation, AUM, ratios & returns. Therefore, you can make a viable investment decision after a proper study from the Debt Mutual Fund Taxation - Capital Gain & Dividend performance book.
Disclaimer - The information provided in this book is basically to help, educate and guide on the subject matters discussed. All recommendations and examples are purely on the assumption basis. The author disclaims any liability in connection with the use of this information. Readers are suggested to consult their Tax/Financial Advisors before taking any Tax decision.