BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Associations and mutual fund companies, for income tax purposes, are excluded in the definition of corporations.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Taxation of Capital Gains of Equity Funds These gains are taxed at a flat rate of 15%, irrespective of your income tax bracket. You make long-term capital gains on selling your equity fund units after a holding period of one year or more. These capital gains of up to Rs 1 lakh a year are tax-exempt.
Detailed explanation-2: -Section 10(23D) of the Income-Tax Act, 1961-Tax incentives to Mutual funds set up by bank, etc.
Detailed explanation-3: -Provided that the mutual fund units are held as capital assets. Tax to be deducted at source as per section 196A of the Income tax Act, 1961 (’the Act’) [plus applicable surcharge, if any, and Health and Education Cess 4% on income-tax and surcharge].
There is 1 question to complete.