How returns from various asset classes are taxed - The Economic Times

http://economictimes.indiatimes.com/wealth/tax/how-returns-from-variou...

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11/01/2016 1:55 PM

How returns from various asset classes are taxed - The Economic Times

http://economictimes.indiatimes.com/wealth/tax/how-returns-from-variou...

How returns from various asset

classes are taxed
By Narendra Nathan, ET Bureau | 4 Jan, 2016, 08.00AM IST

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1. If you hold on to them for a year, the

long-term capital gain is tax free

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2. Short-term capital gain is taxed at 15%

3. Dividends are tax free

reckoner of taxes associated with

every asset class.

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1. Interest up to Rs 10,000 is tax free, taxed at slab rate after that

2. TDS not deducted on savings interest.
Fixed deposits
1. Full interest taxed at slab rate
2. TDS of 10% if interest in any financial year crosses Rs 10,000
Recurring deposits
1. Full interest taxed at slab rate
2. TDS not deducted on RD interest
Tax-free bonds
1.
2.
3.
4.

Full interest is tax free

The long-term capital gain (after holding for 1 year) taxed at 10%
Being interest bearing instruments, no indexation benefit allowed
Short-term capital gain taxed at marginal rates.

Normal bonds and debentures

1. Full interest taxed at slab rate TDS of 10% if interest in any financial year
crosses the Rs 5,000 mark
2. The long-term capital gain (after holding for 1 year) taxed at 10%
3. Being interest bearing instruments, no indexation benefit allowed
4. Short-term capital gain taxed at marginal rates.

MUTUAL FUNDS
Equity funds
1. Long-term capital gain (after holding for 1 year) is tax free
2. Short-term capital gain is taxed at 15%
3. Dividends are tax free
Arbitrage funds

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11/01/2016 1:55 PM

How returns from various asset classes are taxed - The Economic Times

http://economictimes.indiatimes.com/wealth/tax/how-returns-from-variou...

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