DEBT MUTUAL FUND, GOLD, TAX-FREE BONDS

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