Ch.8 · Dividend and STT Taxation · medium
What is the tax implication of investing in a mutual fund through a 'Demat account' vs a 'statement of account' mode?
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EXPLANATION
Whether mutual fund units are held in demat form or statement of account form, the capital gains tax treatment is exactly the same. Both are taxed under the same capital gains provisions of the Income Tax Act. The demat mode offers convenience of viewing all investments in one place (like shares) but provides no tax advantage over the statement mode.
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