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Tax on Mutual Fund Investment for 2017


Mutual fund Taxation


Equity funds held for 12 months or more qualify as long-term capital gains which are tax-free.  Non equity funds incur short term capital gains tax for holding less than 3 years




The dividend income received from the funds (in case you opt for dividend option) is tax free in your hands for both equity and debt funds. The only difference is that for debt funds, this dividend is paid out to you after the fund house pays a dividend distribution tax (DDT) of 28.33% for FY16-17.



The capital appreciation on funds are categorised as equity funds and non-equity funds for taxation. Based on the categories the gains will incur taxation as stated in the chart below:

Mutual fund taxation this financial year


Fund categories considered for equity taxation: Large cap, Mid-cap, Small-cap, Multi-cap, Balanced funds (equity oriented), Sector funds, etc.


Fund categories considered for non-equity taxation: Liquid mutual funds, Money Market funds, Gold funds, Infrastructure debt funds, Balanced funds (Debt oriented), Equity-International, Fund of Funds, etc.



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Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

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Mutual Fund Application Forms Download Any Applications
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Infrastructure Bond Application Forms Download Applications

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Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
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