How to get Income tax benefits through Mutual Funds

Throughout our life we have done things for our betterment, to grow and to make ourselves better than we were the previous day. We all do it consciously or otherwise. There has been a point in our lives where we chose things we liked rather than the things that would do good for us. And at a different time, we would have chosen the things which were good for us rather than the things that we liked.

It’s all about betterment and benefits and time.

And this same betterment is what we seek in our careers, which leads us to income.

What is the biggest fear of a working woman/man?


Mutual Funds

People run away at the sound of it. The taxes eat up half the salary. People struggle to find a way to deal with it. There are umpteen options to decrease the amount spent on taxes. One of the ideal ways is to invest in mutual funds. Mutual funds are nothing but funds in which the money from various investors are grouped and used to purchase securities.

Here is a way to get income tax benefits through mutual funds.

Investments like Mutual funds, SIP etc… are eligible under income tax exemptions. The amount invested in these securities can be regained again through Section 80C. There is no constraint on the amount to be invested. The maximum amount of deductible is 1,50,000.

There are various tax benefits associated with investing in a mutual fund.

Another important aspect of Section 80C is the lock-in period. The shareholders can’t sell their shares during the lock-in period. These funds have a lock-in period of 3 years whereas other investments have a lock-in period of 6-15 years.

Dividend mutual funds is a great choice for investment. The companies share their dividends with the shareholders. The dividends are profits shared by the company with the shareholders. It also comes with many perks. These dividends are devoid of taxes. It is the best option for a risk-free investment.

Capital gains on mutual funds are exemplary. There are two types of gains: long term and short term. According to Investopedia, Any income you receive from investments you held for less than a year is called as short term gains and Any income you receive from investments you held for more than a year. The tax on short term capital gains is at a concessional rate of 15% under Section 111A.

Another option is balanced funds which involve holding both stocks and bonds. They are similar to non-tax saving equity funds.

The tax benefits are exemplary for a longer term of investment in mutual funds.

There are many opportunities available to make our life a little bit easier and along the path better. We have to take the risk and jump for it because that’s how you achieve the little things which lead to bigger and greater things. Think about it. You can approach authorised brokers like Goodwill to support you in your journey.

Contact Goodwill at or give a call at +91 – 44 – 4020 5050. Start Trading Today!

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