Tax treatment towards Stocks when compared with MFs

Q & A Forum › Category: Mutual Funds › Tax treatment towards Stocks when compared with MFs

M.Ganesha asked 9 years ago

Hello Sir, I have one lakh in a bank account and would like to invest it in equities for 3-4 years, I would like to know how I will be taxed in the following cases ?

If I purchase a good stock of a medium or small company.
If I purchase medium or small equity MFs

If I sell the Stock or MF after 4 years what would be my tax liability (assume I make profit of 30,000 in both cases) ? I heard that I do not have to pay any taxes if I hold the stock or MF for more than a year. Is my understanding correct ? or will I have to add this profit to my yearly total tax and I get taxed as per the tax bracket. Thanks for your help and support.

1 Answers

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Sreekanth Staff answered 9 years ago

Hi, The taxation on Equity oriented funds & Direct Equity (Shares) is same. Your understanding is correct. Kindly read: MF Taxation rules..