Mutual Fund Tax Calculator - Quantum Mutual Fund (2024)

FAQs

How to calculate mutual fund tax? ›

- Taxation of Capital Gains Provided by Equity Funds

Regardless of your income tax bracket, these gains are taxed at a flat rate of 15%. When you sell your equity fund units after holding them for at least a year, you realize long-term capital gains. These capital gains are tax-free, up to Rs 1 lakh per year.

Systematic Withdrawal Plan (SWP): Set up an SWP to automatically redeem your mutual fund units regularly. By keeping withdrawals below Rs. 1 lakh per year, you may avoid LTCG tax altogether.

How to compute your SIP mutual funds returns? SIP mutual funds returns work on the below formula: P [ (1+i)^n-1 ] * (1+i)/i where P is what you invest at periodic intervals, n pertains to the number of investments/payments and i is the rate of interest (periodic).

You will get a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. a. ELSS funds are the only tax-saving funds within the Rs 1.5 lakh limit which has the additional advantage of giving equity-linked returns.

Mutual funds are not taxed twice. However, some investors may mistakenly pay taxes twice on some distributions. For example, if a mutual fund reinvests dividends into the fund, an investor still needs to pay taxes on those dividends.

Just as with individual securities, when you sell shares of a mutual fund or ETF (exchange-traded fund) for a profit, you'll owe taxes on that "realized gain." But you may also owe taxes if the fund realizes a gain by selling a security for more than the original purchase price—even if you haven't sold any shares.

Long-term capital gains on mutual funds are available when you sell your equity shares after holding on to them for more than a year. When your long-term capital gains are above Rs 1 lakh, you will have to bear taxes on them. The LTCG on mutual funds tax rate is 10% with no indexation benefit.

Conclusion: While Quant Mutual Fund presents a systematic approach to investing, its reliance on quantitative models entails inherent risks. Investors should carefully evaluate their risk tolerance and investment objectives before considering Quant funds.

How to check if a mutual fund is a tax saver? ›

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. If you are investing via a third party, the same information will also be available on their website.

Index mutual funds & ETFs

Index funds—whether mutual funds or ETFs (exchange-traded funds)—are naturally tax-efficient for a couple of reasons: Because index funds simply replicate the holdings of an index, they don't trade in and out of securities as often as an active fund would.

Distributions and your taxes

If you hold shares in a taxable account, you are required to pay taxes on mutual fund distributions, whether the distributions are paid out in cash or reinvested in additional shares.

In most, if not all, cases, when a mutual fund is competently managed you will not see any tax consequences from a reinvestment. However, if you receive a capital gains distribution you may owe capital gains taxes on that money.

Treatment of Capital Loss on Mutual Funds

Income-tax Act allows a person to adjust his losses with taxable profits. Long-term capital loss can be set off only against long-term capital gains, and it cannot be set off against short-term capital gains, though both of them fall under the same head of capital gains.

There are a number of factors that dictate your mutual fund's tax efficiency, including the frequency of trading activity, the longevity of each investment in the portfolio, and the types of distributions your fund makes.

The income received from the debt mutual fund is considered as the income of the investor and added to the total income under the head income from other sources. This income has to be disclosed under the head income from other sources in ITR-1.

Mutual funds may earn four types of income from the securities they hold: interest, foreign income, dividends and capital gains . The income earned may be offset, wholly or in part, by certain deductions . Management fees, operating expenses and their applicable taxes can be used to offset all four types of income .

However, to get access to CAMS capital gains statement for mutual funds, individuals have to follow these steps: Step 1: Individuals need to go to the webpage of CAMS and accept the Terms and Conditions. Step 2: Now, they will select 'Statements' and tap on 'Capital Gain/Loss Statement. '