News for mutual fund investors, new tax exemption scheme may come in the budget
In the budget, the central government can announce a new scheme of mutual funds, which provides benefits of tax exemption. Those investing in this will get an exemption under section 80C of the Income Tax Act.
- Last Updated:
January 16, 2020, 6:42 PM IST
- Edited by: Puja menon
Let us tell you that at present, mutual fund investors can avail tax savings only by investing in equity linked saving scheme ie ELSS. Those investing here get an exemption under section 80C of the Income Tax Act.
In case of ELSS SIP, every install will be locked for three years. Simply put, if you started a SIP of Rs 12,500 per month from 1st April 2019, then the first installment will be locked till April 2022, while the second installment will be locked till May 2022.
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Investing in mutual funds should be more retail investor friendly. Holding in Gold and Commodity ETFs should be reduced from the current 3 years to 1 year.
This will benefit investors in LTCG tax. At the same time, ULIP of life insurance companies has also been demanded.Also read- LIC gift to home buyers! Home EMI will not be given for 6 months, this way benefits
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First published: January 16, 2020, 5:40 PM IST
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