Ch.8 · Capital Gains Tax on Mutual Funds · hard
What is the tax treatment of mutual fund investments made by Provident Fund Trusts?
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EXPLANATION
Recognised Provident Fund Trusts (both Employees Provident Fund and other PF trusts recognised under Part A of the 4th Schedule of the Income Tax Act) are exempt from income tax on their investment income, including interest, dividends, and capital gains. This allows PF trusts to maximise returns for their members without tax leakage. They can invest in equity and debt mutual funds within EPFO/trust deed investment guidelines.
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