DEBT MU­TUAL FUND, GOLD, TAX-FREE BONDS

Deccan Chronicle - - Money -

Re­turns from in­vest­ments are a form of in­come. Where there is in­come, taxes may need to be paid. But ev­ery in­vest­ment is cre­ated dif­fer­ently and there­fore taxed dif­fer­ently. In any or­di­nary port­fo­lio, there may be at least 34 dif­fer­ent as­set classes. Each of them may have its own unique set of tax­a­tion rules. How do you know how much tax you need to pay on any in­vest­ment? Let’s look at some pop­u­lar in­vest­ments and how their re­turns are taxed. fi­nan­cial year from eq­uity are taxed at 10.4 per cent. Short term cap­i­tal gains from eq­uity are taxed at 15.6 per cent.

Tax Ef­fi­ciency & Re­turns Rat­ing: 5/5

These three as­set classes are taxed in a sim­i­lar man­ner with mi­nor vari­a­tions. All three as­sets be­come long term in three years. Long term cap­i­tal gains from them are taxed at 20.8 per cent with in­dex­a­tion ben­e­fits. Short term cap­i­tal gains are taxed as per the in­vestor’s tax slab. Re­turns

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