NISM-Series V-A: Mutual Fund Certification Exam Notes
Page 37 Of 63
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Securities Transaction Tax (STT) is applicable on investments in equity and equity mutual fund schemes. STT is not payable at the time of Purchase of Units. At the time of redemption 0.001% STT has to be paid.
Equity Linked Savings Schemes (ELSS) are eligible for deduction under Section 80C of the Income Tax Act. The scheme has a lock-in period of 3 years from the date of investment.
There is no TDS on re-purchase proceeds to resident investors.
In case of dividends from mutual fund schemes, even for resident Indians, TDS is applicable. The tax is required to be deducted at 10 percent on the dividend amount if it exceeds Rs. 5,000.
AMC(s) can charge GST, as per applicable Taxation Laws, to the schemes within the limits prescribed under SEBI (Mutual Fund) Regulations
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