I want to know whether I can get tax benefit for investing in any equity mutual fund other than Equity Linked Savings Scheme (ELSS)?
- Debashis Murmu
Investments in Equity Linked Savings Scheme (ELSS) qualify for tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. No other equity funds qualify for tax deduction under Section 80C. However, equity funds offer you other tax benefits, too. For example, you can get tax-free dividends from equity mutual funds. If you sell your equity mutual funds after a year, the returns will qualify for long-term capital gains tax. Long-term capital gains tax is nil on equity. If you sell your equity mutual funds before a year, you will have to pay short-term capital gains tax of 15 per cent on your returns.
This article was originally published on January 06, 2016.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
