Dividend Distribution Tax (DDT)
AMC is now required to deduct 10% if the total dividend paid to an investor during a financial year exceeds ₹5,000.
moe at taxation in mutual funds. you can claim as TDS later.
| Type of Mutual Fund | Holding Period on STCG | Holding Period on LTCG |
| Equity Funds | Less Than 12 Months | More Than 12 Months |
| Debt Funds (Until 31st March 2023) | Less Than 36 Months | More Than 36 Months |
| Hybrid Fund-Equity Oriented | Less Than 12 Months | More Than 12 Months |
| Hybrid Fund-Debt Oriented (Until 31st March 2023) | Less Than 36 Months | More Than 36 Months |
STCG if you sell within one year these gains are taxed at a flat rate of 15%. Regardless of your income tax bracket,
ex: if buy at 100 and and sell at 130 within a year, then you have to pay 15% tax on 30 if your income under taxable bracket. if your income 2.5 lakhs per year..
LTCG 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.
Any long-term capital gains over this threshold are subject to a 10% LTCG tax, with no benefit of indexation.
Is Stcg tax deducted at source?
n0, you have to mention it on ITR, it department has records of shares sold and buy.. 16as statement all transaction through pan.
if your total income less than 2.5lakh then no need to pay.
tax on debt funds
. This means that gains from debt funds purchased after April 1, 2023, are added to taxable income as STCG , regardless of how long they are held. until March 31st 2023, these gains were considered as long-term capital gains and taxed at a 20% rate after indexation.
Capital Gains tax on Hybrid Funds (debt+equity)
equity oreinted debt funds 65% + equity and remaining debt.
deb oriented fund have less equity exposure.
Securities Transaction Tax or STT
as transaction fee for exacnahges 0.001% for equity, no fee for debt funds.
