Is ELSS taxable after 3 years Quora?
Since ELSS Mutual funds have a three years lock-in period, your gains will be considered as Long term capital gains(LTCG) as an equity investment if held on for more than one years are categorized as a Long term. As per the existing rules, you need to pay tax on LTCG if your gains in a financial year exceed Rs. 1 lakh.
Can I redeem ELSS after 3 years?
You always have the option of investing in Public Provident Funds or Fixed Deposits if you want to reduce your taxable income. An ELSS investment has a lock-in period of just 3 years, which means that you can withdraw your funds from the scheme after the three year term of your investment is completed.
Is mutual fund taxable after 3 years?
Long-term capital gains are realised when you sell units of a debt fund after a holding period of three years. These gains are taxed at a flat rate of 20\% after indexation. Also, you are levied with applicable cess and surcharge on tax.
Is ELSS taxable on maturity?
The redemption proceeds of ELSS are not entirely tax-free. The long-term capital gains of up to Rs 1,00,000 a year are tax-free, and any gains above this limit attract a long-term capital gains tax at the rate of 10\% plus applicable cess and surcharge.
Is ELSS mutual fund taxable?
Why ELSS is tax-free? The redemption proceeds of ELSS are not entirely tax-free. The long-term capital gains of up to Rs 1,00,000 a year are tax-free, and any gains above this limit attract a long-term capital gains tax at the rate of 10\% plus applicable cess and surcharge.
Is ELSS tax-free?
Is mutual fund return taxable?
Any returns that are gained from mutual fund investments are also liable for taxation. In fact, the returns are taxed under the ‘Income from Capital Gains’ header. Thus, it can be short-term or long-term based on the holding period of the investment. The tax rates for both categories are different.