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INCOME TAX: 2023-24..

Five major announcements for Income Taxpayers:
👉🏻 New tax regime to become the default tax regime

👉🏻No tax on income up to Rs 7 lakh a year in the new tax regime
👉🏻Govt proposes to increase the income tax rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime
👉🏻 Four new slabs in the new tax regime
👉🏻 No income tax till Rs 3 lakh income

New slabs under new tax regimes

  • Rs 0 -3 lakh Nil

  • Rs 3-6 lakh 5%

  • Rs 6-9 lakh 10%

  • Rs 9-12 lakh 15%

  • Rs 12-15 lakh 20%

 

MUTUAL FUND TAXATION: 2023-24

Mutual Fund Taxation – How Mutual Funds Are Taxed?

Mutual funds are one of the most buzzing investment options as they help you achieve your financial goals. Mutual funds are also tax-efficient instruments. Investing in fixed deposits is a great disadvantage, particularly if you fall under the highest income tax bracket, as the interest is added to your taxable income and taxed at your income tax slab rate. This is where mutual funds score better. When you invest in a mutual fund, you get the benefit of expert money management and tax-efficient returns.

Latest Update:

Budget 2023: No indexation benefit will be available while calculating long-term capital gains on a Specified Mutual Fund (i.e. a mutual fund that invests less than 35% of its proceeds in the equity shares of domestic companies). Debt mutual funds will now be taxed as per the applicable slab rates.

What is Tax on Mutual Funds?

Profits gained from investment in mutual funds are subject to tax as ‘Capital gains’. So, before investing in mutual funds, you should clearly understand how your returns will be taxed. Moreover, you can also avail tax deductions in certain cases. 

What are the Factors to Determine Tax on Mutual Funds?

Taxation on mutual funds can be explained further by pointing out the factors influencing it. Here are the essential factors that affect the taxes levied on mutual funds:

  • Fund types: Taxes are levied on two types of mutual funds. They are debt-oriented and equity-oriented mutual funds.

  • Dividend: A part of the profit distributed amongst investors by mutual fund houses is called the dividend. 

  • Capital gains: When investors sell their capital assets at a higher price than their total investment amount, the profit is termed capital gains.

  • Holding period of investor: Time between the date of the purchase and sale of mutual fund units. As per the income tax regulations of India, if you hold your investment for an extended period, you will be liable to pay a low tax amount. Thus, the holding period influences the tax rate payable on your capital gains. The higher your holding period, the lesser tax you are liable to pay.

How Do You Earn Returns in Mutual Funds?

Mutual funds offer returns in two forms: dividends and capital gains. Dividends are paid out of the profits of the company, if any. When the companies are left with surplus cash, they may decide to share the same with investors in the form of dividends. Investors receive dividends proportional to the number of mutual fund units held by them.

A capital gain is the profit realized by investors if the selling price of the security held by them is greater than the purchase price. In simple terms, capital gains are realized due to the appreciation in the price of the mutual fund units. Both dividends and capital gains are taxable in the hands of investors of mutual funds.

Taxation of Dividends Offered by Mutual Funds

As per the amendments made in the Union Budget 2020, dividends offered by any mutual fund scheme are taxed in a classical manner. That is, dividends received by investors are added to their taxable income and taxed at their respective income tax slab rates.

Previously, dividends were tax-free in the hands of investors as the companies paid dividend distribution tax (DDT) before paying dividends.

Taxation of Capital Gains Offered by Mutual Funds

The tax rate of capital gains of mutual funds depends on the holding period and type of mutual fund. Capital gains realized on selling units of mutual funds are categorized as follows:

Fund Type

Short-term capital gains

Long-term capital gains

Equity funds

Shorter than 12 months

12 months and longer

Debt funds

Always short-term

Hybrid equity-oriented funds

Shorter than 12 months

12 months and longer

Hybrid debt-oriented funds

Always short-term

Fund type

Short-term capital gains

Long-term capital gains

Equity funds

15% + cess + surcharge

Any gains above Rs 1 lakh are taxed at 10% + cess + surcharge

Hybrid equity-oriented funds

Debt funds

Investor’s income tax slab rate

Investor’s income tax slab rate

Hybrid debt-oriented funds

The short-term and long-term capital gains offered by mutual funds are taxed at different rates.

Taxation of Capital Gains of Equity Funds

Equity funds are those mutual funds where more than 65% of it total fund amount is invested in equity shares of companies. As mentioned above, you realize short-term capital gains if you redeem your equity fund units within one year. These gains are taxed at a flat rate of 15%, irrespective of your income tax bracket.

You make long-term capital gains by selling your equity fund units after holding them for over one year. These capital gains of up to Rs 1 lakh a year are tax-exempt. Any long-term capital gains exceeding this limit attract LTCG tax at 10%, without indexation benefit.

Taxation of Capital Gains of Debt Funds

Debt funds are those mutual funds whose portfolio’s debt exposure is in excess of 65% and equity exposure is not more than 35%. Starting 1st April 2023, the debt funds will no longer receive indexation benefits and deemed to be short-term capital gain. Therefore, the gains from debt funds will now be added to your taxable income and taxed at the slab rate.

Earlier, the long-term capital gains from debt funds were taxed at 20% with indexation benefits. 

Taxation of Capital Gains of Hybrid Fund

The rate of taxation of capital gains on hybrid or balanced funds is dependent on the equity exposure of the portfolio. If the equity exposure exceeds 65%, then the fund scheme is taxed like an equity fund, if not then the rules of taxation of debt funds apply.

Therefore, it is essential to know the equity exposure of the hybrid scheme you are investing in, if not then you might be in for a nasty surprise on redemption of your fund units. The following table summarizes the rate of taxation of capital gains on mutual funds:

Taxation of Capital Gains When Invested Through SIPs

Systematic investment plans (SIPs) are a method of investing in mutual funds. They are designed in such a way that investors can invest a small amount periodically in a mutual fund scheme. Investors are offered the liberty to choose the frequency of their investment. It can be weekly, monthly, quarterly, bi-annually, or annually.

You purchase a certain number of mutual fund units through every SIP installment. The redemption of these units is processed on a first-in-first-out basis. Suppose you invest in an equity fund through a SIP for one year, and you decide to redeem your entire investment after 13 months.

In this case, the units purchased first through the SIP are held for the long term (over one year) and you realize long-term capital gains on these units. If the long-term capital gains are less than Rs 1 lakh, then you don’t have to pay any tax.

However, you make short-term capital gains on the units purchased through the SIPs from the second month onwards. These gains are taxed at a flat rate of 15% irrespective of your income tax slab. You will have to pay the applicable cess and surcharge on it.

Securities Transaction Tax (STT)

Apart from the tax on dividends and capital gains, there is another tax called the Securities Transaction Tax (STT). An STT of 0.001% is levied by the government (Ministry of Finance) when you decide to buy or sell mutual fund units of an equity fund or a hybrid equity-oriented fund. There is no STT on the sale of debt fund units.

Conclusion

The longer you hold on to your mutual fund units, the more tax-efficient they become. The tax on long-term capital gains is comparatively lower than the tax on short-term gains.

services

NSE/BSE TRADING HOLIDAYS FOR CY 2024

Market TimingsTrading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the equities segment are:

  • A) Pre-open session
    Order entry & modification Open: 09:00 hrs
    Order entry & modification Close: 09:08 hrs*

    *with random closure at the last minute. Pre-open order matching starts immediately after the close of pre-open order entry.

  • B) Regular trading session
    Normal / Limited Physical Market Open: 09:15 hrs
    Normal / Limited Physical Market Close: 15:30 hrs

  • C) Closing Session
    The Closing Session is held between 15.40 hrs and 16.00 hrs

  • D) Block Deal Session Timings:
    Morning Window: This window shall operate between 08:45 AM to 09:00 AM.
    Afternoon Window: This window shall operate between 02:05 PM to 2:20 PM.


Note:

  • The Exchange may, however, close the market on days other than the above scheduled holidays or may open the market on days originally declared as holidays. The Exchange may also extend, advance, or reduce trading hours when it deems fit and necessary.

services

PAN AADHAR LINK & NOMINEE UPDATE

Avoid your Mutual Fund Folios, PAN, Demat & Trading account from being frozen!

As per regulatory guidelines, non-completion of the below will lead to frozen folios:

 Steps to update your KYC online for Demat & Trading account

     

As per the regulatory requirement, the nomination and relationship must be updated in the existing folios of the respective RTAs. The links wherein the investors can update the same direction are attached for your reference.

1) The RTAs have provided a digital mechanism for updating the Nomination in the existing folios for the respective investor. This link can be shared with your investors who can in turn provide the required credentials and update the nomination in the RTA records.

Link for CAMS RTA to update the nomination in existing folios:       Link for KFintech RTA to update the nomination in existing folios:

2) The RTAs have provided a digital mechanism for updating the Relationship in the existing folios for the respective investor. This link can be shared with your investors who can in turn provide the required credentials and update the relationship in the RTA records.

Link for CAMS RTA to update the relationship in existing folios:      Link for KFintech RTA to update the relationship in existing folios:

3) The RTAs have provided a digital mechanism for Updating the Email Id./Mobile No and family Declaration in the existing folios for the respective investor.

Link for CAMS RTA Email ID. / Mobile No. Updation & Family Declaration:    Link for KFintech RTA to Change in Email & Mobile No

4) The RTAs have provided a digital mechanism to GET Capital Gains/Loss Statement in the existing folios for the respective investor.

Link for CAMS RTA Capital Gains/Loss Statement;   Link for KFintech RTA to GET Capital Gains/Loss Statement: 

5) The RTAs have provided a digital mechanism to Submit 15G/15H in the existing folios for the respective investor.

Link for CAMS RTA;    Link for KFintech RTA:

6) The RTAs have provided a digital mechanism to get CONSOLIDATED ACCOUNT STATEMENTS of the existing folios for the respective investor.

Link for CAMS RTA;    Link for KFintech RTA:

7) The RTAs have provided a digital mechanism to update PAN in the existing folios for the respective investors.

Link for CAMS RTA;   Link for KFintech RTA:

8) The RTAs have provided a digital mechanism to update FATCA in the existing folios for the respective investors.

Link for CAMS RTA;   Link for KFintech RTA:

9) The RTAs have provided a digital mechanism to get ELSS statements in the existing folios for the respective investors.

Link for CAMS RTA;   • Link for KFintech RTA:

10) The RTAs have provided a digital mechanism to Validate your KYC in the existing folios for the respective investor.

*[CVL KRA]   *[CAMS KRA]     *[KARVY KRA]   *[NDML KRA]  *[DOTEX KRA]

11) The RTAs have provided a digital mechanism to Update your KYC for the respective investor.

# Link for CAMS RTA# Link for KFINTECH RTA

11) The RTAs have provided a digital mechanism to Update Bank Accounts in the existing folios (up to 1.50 Lakh) for the respective investor.

     KFintech to invest into Fintech Products and Solutions to enter Account  Aggregator business

Request you to kindly guide your investors to update their nominations in the respective folios for the successful processing of their transactions before 31st December 2023. Kindly note the updating of nominations and relationships is only for individual investors.

Nomination is a facility that enables an individual unitholder (including the sole proprietor of sole proprietary concern) to nominate a person, who can claim the Units held by the unitholder or the redemption proceeds thereof in the event of the death of the unitholder. 

If the Units are held jointly by more than one person, all joint unit holders are required to nominate a person in whom all the rights in the units would vest in the event of the death of all the joint unit holders. 

# The last Date for the Updation of the Nomination is December 31st, 2023. 

List of Mutual Funds serviced by CAMS:  #Aditya Birla Sunlife MF, #Bandhan MF, #DSP MF, #Franklin Templeton MF, #HDFC MF, #HSBC Mutual Fund, #ICICI Prudential MF, #360 One MF, #Kotak MF, #Mahindra Manulife MF, #PPFAS MF, #SBI MF, #Sriram MF, #Tata MF, #Union MF, and #WhiteOak Capital MF.
List of Mutual Funds serviced by KFintech:  #Axis Mutual Fund, #Baroda BNP Paribas Asset Management Ind Pvt Ltd, #Bank of India Investment Managers Pvt. Ltd, #Canara Robeco Mutual Fund, #Edelweiss Mutual Fund, #Navi Asset Management Ltd, #GROW Mutual Fund, #Invesco Mutual Fund, #ITI Mutual Fund, #JM Mutual Fund, #LIC Mutual Fund, #Mirae Asset Mutual Fund, #Motilal Oswal Mutual Fund, #Nippon India Mutual Fund, #NJ Asset Management Pvt. Ltd, #PGIM India Mutual Fund, #Principal Mutual Fund, #Quant Mutual Fund, #Quantum Mutual Fund, #Samco Asset Management Pvt. Ltd, #Sundaram Mutual Fund, #Taurus Mutual Fund, #Trust Asset Management Co. Ltd, #UTI Mutual Fund

services

Mutual Fund: শেয়ার বাজার বিশেষজ্ঞদের মতে, SIP-তে বিনিয়োগের মাধ্যমে বার্ষিক ভাল রিটার্ন পেতে পারেন একজন বিনিয়োগকারী। তবে মানতে হবে কিছু নিয়ম।

দীর্ঘমেয়াদি বিনিয়োগে (Long Term Investment) মিউচুয়াল ফান্ডে বিনিয়োগ যে বেশ ভালই ফলদায়ক তা প্রায়শই বলেন বাজার বিশেষজ্ঞরা। অনেক সময় অল্প টাকা খাটিয়ে যেমন ভাল লাভ তোলা যায়, ঠিক তেমনই ঝুঁকির পরিমাণও অনেকটা কম থাকে। তবে জানেন কি মাত্র দশ বছরের জন্য কোনও মিউচুয়াল ফান্ডে (Mutual Fund) টাকা রেখে লাখপতি হয়ে যেতে পারেন আপনি! এক দশকের মধ্যে হাতে চলে আসতে পারে ৫০ লক্ষ টাকা। পূরণ করে ফেলতে পারবেন নিজের যে কোনও সুপ্ত বাসনা। কিন্তু, কীভাবে জয় করবেন এই পুঁজির যুদ্ধ?

বিশেষজ্ঞরা বলছেন দীর্ঘমেয়াদে ভাল রিটার্ন পেতে SIP-তে বিনিয়োগ করা যথেষ্ট লাভজনক। শেয়ার বাজার বিশেষজ্ঞদের মতে, SIP-তে বিনিয়োগের মাধ্যমে বার্ষিক ভাল রিটার্ন পেতে পারেন একজন বিনিয়োগকারী। সাধারণভাবে, ভাল কোনও মিউচুয়াল ফান্ডে অর্থ বিনিয়োগ করলে গড়ে বার্ষিক ১০ থেকে ১২ শতাংশ রিটার্ন খুব সহজে পাওয়া যায়। বিনিয়োগকৃত অর্থের পরিমাণ ও সময়সীমা হাতে অনেকটা বেশি থাকলে এই রিটার্ন আবার ছুঁয়ে ফেলতে পারে ১৫ শতাংশের গণ্ডি। উল্লেখ্য, দশ বছরে ৫০ লক্ষ আয়ের প্রসঙ্গে সেবি’র (SEBI) বিনিয়োগ বিশেষজ্ঞ জিতেন্দ্র সোলাঙ্কি জানিয়েছেন, “দশ বছরে ৫০ লক্ষ টাকা লাভ সহজে সম্ভব নয়। এই পরিমাণ টাকা আয়ের জন্য বিনিয়োগকারীকে চলতে হবে যথেষ্ট নিয়মমাফিক পদ্ধতিতে। প্রতি মাসে রুটিন মাফিক বিনিয়োগ করতে হবে নির্দিষ্ট SIP-তে। চলবে না কোনোরকম ঢিলেমি।”

কিন্তু প্রতি মাসে কত টাকা বিনিয়োগ করলে এই স্বপ্নকে ধরতে ছুঁতে পারবেন আপনি? এই প্রসঙ্গে জেনে রাখুন, “৫০ লক্ষের এই দৌড়ে জয়ী হতে প্রতি মাসে গড়ে ১২৫০০ টাকা SIP-তে বিনিয়োগ করতে হবে একজন বিনিয়োগকারীকে। এই পরিমাণ টাকা বিনিয়োগ করলেই বার্ষিক ১২ শতাংশ রিটার্নের মাধ্যমে দশ বছরে ৫০ লক্ষ টাকার মালিক হতে পারবেন একজন বিনিয়োগকারী। কোনও কোনও ক্ষেত্রে বার্ষিক রিটার্ন আবার ছুঁয়ে যেতে পারে ১৫ শতাংশের গণ্ডিও।”

#সিস্টেম্যাটিক ইনভেস্টমেন্ট প্ল্যান (SIP) কি?

সিস্টেম্যাটিক ইনভেস্টমেন্ট প্ল্যান (SIP) হল মিউচুয়াল ফান্ডের দ্বারা প্রস্তাবিত একটি পথ যেখানে একটি নিয়মিত ইন্টার-ভেল বা অন্তরে মিউচ্যুয়াল ফান্ড স্কিমে একটি নির্দিষ্ট পরিমাণ বিনিয়োগ করতে পারেন-ধরুন মাসে একবার বা ত্রৈমাসিক কালে একবার, এক যোগে বিনিয়োগ করার পরিবর্তে। কিস্তির পরিমাণ মাসে 500 টাকার যতো ছোট পরিমান হতে পারে এবং এটি রেকারিং ডিপোজিটের মতোই। এটা সুবিধাজনক কারণ আপনি আপনার ব্যাঙ্ককে প্রতি মাসে পরিমাণটি ডেবিট করা বা কেটে নেওয়ার স্ট্যান্ডিং ইন্সট্রাকশন বা স্থায়ী নির্দেশাবলী দিতে পারেন।

SIP ভারতীয় মিউচুয়াল ফান্ডের বিনিয়োগকারীদের মধ্যে জনপ্রিয়তা অর্জন করেছে, কারণ এটি বাজারের অস্থিতিশীলতা এবং বাজারের সময় সম্পর্কে উদ্বেগ ছাড়াই নিয়মনিষ্ঠ-ভাবে বিনিয়োগ করতে সহায়তা করে। মিউচুয়াল ফান্ডগুলির দ্বারা প্রস্তাবিত সিস্টেম্যাটিক ইনভেস্টমেন্ট প্ল্যানগুলি সহজেই দীর্ঘমেয়াদের জন্য বিনিয়োগের দুনিয়াতে প্রবেশ করার সেরা উপায়। দীর্ঘ মেয়াদের জন্য বিনিয়োগকরা খুবই গুরুত্বপূর্ণ যার মানে হল শেষের রিটার্নগুলি বাড়াতে, আপনাকে তাড়াতাড়ি বিনিয়োগ শুরু করা উচিত। সুতরাং আপনার মন্ত্র হওয়া উচিত – তাড়াতাড়ি শুরু করুন, নিয়মিত বিনিয়োগ করুন আপনার বিনিয়োগের থেকে সেরাটি পেতে।

#আমার SIP না লাম্পসাম কোনটিকে বেছে নেওয়া উচিৎ তা আমি কিভাবে বুঝবো?

SIP-এ, নাকি একটি এককালীন বিনিয়োগ (লাম্পসাম)-এ বিনিয়োগ করবেন? আপনি কোনটি পছন্দ করবেন তা নির্ভর করছে আপনার মিউচুয়াল ফান্ডের সঙ্গে পরিচিতি কতটা, আপনি যে ফান্ডটিতে বিনিয়োগ করতে চান