Taxation on Mutual Funds Quiz

What will be the tax applicable on capital gains made, if Equity mutual fund units are sold or redeemed before 12 months?

• Tax-exempt up to 1 lakh

• 15% + cess + surcharge

• 20% + cess + surcharge

• 10% + cess + surcharge

The investor invests a lumpsum amount and withdraws some money regularly over a period of time. This is called

• Systematic Investment Plan

• Systematic Transfer Plan

• Systematic Withdrawal Plan

• None of the above

Long-term capital gains made by investor in debt funds are taxed at,

• 15% + cess + surcharge

• 20% + cess + surcharge

• Taxed at Investor's income tax slab rate

• 10% + cess + surcharge

Choose the correct statement.

• FIIs and Residents both get benefit of Indexation in Taxation for capital gains made by Mutual Fund investment schemes.

• Only Resident Indians can get benefit of Indexation in Taxation for capital gains made by Mutual Fund investment schemes.

The dividend declared by mutual funds in respect of the various schemes is taxable in the hands of investors.

• True

• False

……………is a procedure by which the investor can get benefit from the fact that inflation has eroded his returns.

What will be the tax applicable on capital gains made, if Hybrid equity-oriented mutual fund units are sold or redeemed after 12 months?

• Tax-exempt up to 1 lakh, Above 1 lakh 10%

• 20% + cess + surcharge

• Taxed at the investor's income tax slab rate

• 15% + cess + surcharge

Choose the correct statement.

• Systematic Withdrawal Plan is a type of scheme while Monthly Income Plan is an investment style.

• Systematic Withdrawal Plan is an investment style while Monthly Income Plan is a type of scheme.

……………is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme and invests a the fixed amount of his choice at fixed intervals.

• Systematic Transfer Plan

• Systematic Withdrawal Plan

• Systematic Investment Plan

• Systematic Innovative Plan

Which of the following statement is false in respect of Investment guidelines for Mutual fund investments?

• No scheme can invest more than 10% of its NAV in rated debt instruments of a single issuer.

• Schemes can invest in unlisted securities of its sponsor or its group entities.

• No scheme can invest more than 10% of its NAV in equity of a single company except index funds.

• No fees will be charged if one scheme invest in another scheme.