Tax FAQ
 

Is The Interest Earned On Mutual Funds Tax Free?

Question by Sam K | Posted in India

If a himself is investing in Mutual funds (other than ELSS) for a long term say 3 years. Is the interest earned and working capital in this way tax free?

Answer: Returns from Shared funds are of 2 types: Dividend & Growth.

These returns are capital gains. LTCGs from Reciprocal funds (even ELSS)are tax free.

What do you mean by "is principal in this way tax free?" ? If you are asking about tax advance on investment, then only ELSS is eligible.

HMT
 
 

What Are Those Tax-free Funds?

Question by Cindy16 | Posted in Investing

I am wondering, are those Delineate tax-free funds are tax free for the earnings?
So, if I have a Maryland tax free funds and I make 5% interest on it. I don't need to pay that interest gain as part of my income tax, am I chide?

Answer: You are grade, it is free of federal and state taxes (as long as you live in Maryland). They may also be free of native taxes if any cities in Md. also have income taxes. You may have to pay capital gains taxes on the profits the savings makes when they buy and sell.

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Are All Mutual Funds Are Tax Free Or Only ELSS ?

Question by narayanasgs | Posted in India

hi,
Are all shared funds and the amount we make by investing in them is tax free? or only ELSS mutual funds are tax free?
Thanks in advance.

Answer: You seem to be under a out of order impression.

Dividend income from all equity oriented mutual funds is exempt from tax; return from sale of the units is also exempt if the units have been held for at least one full year. If the units are sold within one year, 10.30% eliminating term capital gains tax is payable.

Dividend income from ELSS funds is also taxfree under the same potables. As you cannot dispose ELSS units before three years, the sale proceeds of such funds

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Exempt Interest On Mutual Funds Are Tax Free, But Would AMT Affect All Shareholders?

Question by JustQA | Posted in United States

Does Alternate Minimum Tax change from one individual to other or is it a rate applicable all? How is AMT determined?
Would municipal tie funds decalre exempt interest or reallocate income dividend to exempt intest?
What is extrinsic tax paid in the Form 1099-INT?

Answer: Exempt interest shared funds yield exempt interest and there can be short term cap gain and long term cap capture. The interest is exempt from federal tax and depending on your state law could be exexpt fully in your state or taxable in your situation to the extent of interest received on other state bond. The cap gains will be taxable federal, but there mostly is not must gain on a fund.
The almin tax rate is either 26 or 28% depending on your revenues level. Exempt interest can be subject

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Do I Need To Pay US Capital Gains On Long Term Capital Gains In Sale Of India Mutual Funds (tax Free In India)

Question by timepass | Posted in United States

I own complementary funds in India, and sold them for long term profit. These long term central gains are tax free in India. Am I required to pay US capital gains taxes on it? I am a green index card holder but Indian citizen living in the US

Answer: As a US dweller, you are taxable on this item. A tax treaty would be relevant only if you were claiming to be a Treaty resident of India rather than the US.

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Tax Free Retirement - UL Policy vs. Qualified Plan

George Watkins demonstrates how an Impartiality Index Universal Life Policy out performs a Qualified Plan (401k, 403b, IRA) Investment. Furthermore, the ...

Vanguard Mutual Fund to ETF Share Conversions » My Money Blog

by Jonathan

(Four of our ties ETFs—Total number Trammels Deal in, All in all-Provisos Restraints, Midway-Course Relationship, and Want-Appellation Cords—do not grant the conversion of cords sign fund shares to bind ETF shares of the same subsidize. Shareholders of Vanguard wares index finger funds that proffer Vanguard ETFs may transmute their received shares to Vanguard ETFs of the same pay for. Here’s what the Vanguard website has to say about it:. Can I transmute old hat Vanguard requited reservoir shares to Vanguard ETFs. If you are invested in Vanguard reciprocated funds, you might have been disturbed by their just out proclamation of free trades for Vanguard ETFs for in-bawdy-house brokerage customers. This conversion is conventionally tax-free, although some brokerage firms may be not able to proselyte fractional shares, which could sequel in a timid taxable produce....

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