Is stamp duty applicable on mutual funds?

When you purchase units of a mutual fund plan, you will have to pay stamp duty charges on the units allotted, and it is in addition to the applicable charges such as the platform fee (if you invest through a particular site, then they may charge a sum), service charge, GST, and transaction charges.

What is stamp duty in mutual fund SIP?

The stamp duty will be levied at the rate of 0.005\% on the value of units purchased. For the transfer of mutual fund units between Demat accounts, a stamp duty of 0.015\% will be applied.

Why do mutual funds come with annual fees?

Mutual funds pay an annual fee to a management company for managing the fund and its investments. Funds also pay their own operating expenses (such as legal and accounting fees, custodial fees, and bookkeeping costs). You don’t pay the MER directly, but these expenses affect you because they reduce the fund’s return.

Is there tax on mutual funds in India?

Mutual funds, on the other hand, are one of the most tax friendly investment options available to Indian investors. Long term capital gains tax in equity funds is 10\% + 4\% cess provided the gain in a financial year is over Rs 1 Lakh. Long term capital gains upto Rs 1 Lakh is totally tax free.

Is STT applicable for mutual funds?

To summarize, STT is a tax paid on purchase or sale of securities on registered stock exchanges. When it comes to mutual funds, only equity printed funds attract an STT payment. If you’ve invested in a debt oriented fund, then no STT is liable on it.

What is STT in mutual fund?

Securities Transaction Tax (‘STT’) is applicable only in respect of sale of units of Equity-oriented funds (EOFs) on a recognised stock exchange and on repurchase (redemption) of units of EOFs by the mutual fund. STT in not applicable in respect of purchase/ sale/ redemption of units of other schemes (other than EOFs).

What is meant by stamp duty?

Stamp duty is a tax imposed on the sale of property/property ownership by the state government. The duration of the stamp duty at the time of registration shall be based on the value of the house/property. It also varies based on the state or area where the property is located, and whether it is a new or old house.

Do all mutual funds have fees?

Regardless of the cost, all mutual funds have a fee referred to as an expense ratio, or sometimes called a management fee or an operating expense. This fee is deducted from the total assets of the fund before your share price is determined.