How are mutual funds taxed?
In a mutual fund, you make returns in two ways. How are mutual funds taxed for each of these ways? It depends on the nature of return.
tax
Indexation in debt funds – pay little or no tax
Cost inflation index benefit makes the post-tax return of debt funds far superior to fixed deposits. If there’s one major advantage with debt funds compared to fixed deposits, it’s their taxation. Indexation benefit in debt funds helps you drastically cut down on tax outgo, improving your post-tax returns. Here’s what you should know about indexation …