27 June 2022 8:22

Is LIC MF ETF NIFTY 100 deductible under Indian Income tax sec 80C?

No, all mutual funds do not qualify for tax deductions under Section 80C of the income tax Act, Only investments in equity-linked saving schemes or ELSSs qualify for tax deduction under section 80C.

Does ETF come under 80C?

So from now onwards, like ELSS, investments made in the ETFs will be subject to lock-in for 3 years and eligible for tax deductions of up to Rs. 1.5 lakhs under section 80C of the Income-Tax Act.

Which MF comes under 80C?


An equity-linked savings scheme or ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. By investing in ELSS, you can claim a tax rebate of up to Rs 1,50,000 a year and save up to Rs 46,800 a year in taxes. An ELSS is the only kind of mutual fund eligible for tax benefits under Section 80C.

Which SIP is tax free under 80C?

equity linked savings scheme

Which SIP is tax free under section 80c? 80C allows deduction upto Rs 1.5 lakh for investment made in ELSS (equity linked savings scheme). You can also start SIP for ELSS mutual funds for which deduction upto Rs 1.5 lakh will be available u/s 80C.

Are ETF tax free in India?

In case of ETFs in India, short term capital gains are taxed at the peak rate of tax for the investor concerned while long term capital gains are either taxed at 10% without indexation or at 20% with indexation benefits.

Are index funds tax deductible?

Because of tax efficiency, investors holding funds in a taxable brokerage account can reduce taxes by using passively managed funds. That is why index funds are said to be tax-efficient funds.

How much can I deduct under 80C?

₹ 1.5 lakhs per year

Section 80C provides deductions on various investments upto ₹ 1.5 lakhs per year from your taxable income. In comparison, Section 80CCC provides a deduction of upto ₹ 1.5 lakhs per annum for the contribution made by an individual towards specified pension funds.

How do I report an ETF on my taxes?

The IRS taxes dividends and interest payments from ETFs just like income from the underlying stocks or bonds, with the income being reported on your 1099 statement. Profits on ETFs sold at a gain are taxed like the underlying stocks or bonds as well.

What are the tax benefits of ETFs?

An ETF holds two major tax advantages over a mutual fund. First, mutual funds usually incur more capital gains taxes due to the frequency of trading activity. Secondly, the capital gain tax on an ETF is delayed until the sale of the product, but mutual fund investors will pay capital gains taxes while holding shares.

Is ETF a capital gain?

While distributions from US ETFs are categorized as capital gains or return of capital for US taxpayers (those filing a US tax return), they will still be considered fully taxable to Canadian taxpayers.

Is ETF same as index fund?

What Is the Difference Between an ETF and Index Fund? The main difference between an ETF and an index fund is ETFs can be traded (bought and sold) during the day and index funds can only be traded at the set price point at the end of the trading day.

What is difference between mutual fund and ETF?

ETFs actively trade throughout the trading day while mutual fund trades close at the end of the trading day. Mutual funds are actively managed, and ETFs are passively managed investment options.

Which is better ETF or index fund?

The main difference between index funds and ETFs is that index funds can only be traded at the end of the trading day whereas ETFs can be traded throughout the day. ETFs may also have lower minimum investments and be more tax-efficient than most index funds.

Are ETFs better for taxable accounts?

ETFs can be more tax efficient compared to traditional mutual funds. Generally, holding an ETF in a taxable account will generate less tax liabilities than if you held a similarly structured mutual fund in the same account. From the perspective of the IRS, the tax treatment of ETFs and mutual funds are the same.

Should I convert mutual fund to ETF?

It may be the right time to switch to ETFs if mutual funds are no longer meeting your needs. For some, switching to ETFs makes sense because the expenses associated with mutual funds can eat up a substantial portion of profits.

Which is the best ETF in India?

Top & Best Index ETFS 2022

Fund Name 1M Return(%) 3Y Return (% p.a.)
HDFC Sensex ETF 3.67 22.06
SBI – ETF Sensex 3.67 19.75
Edelweiss ETF – NQ30 5.52 -28.09
UTI Sensex Exchange Traded Fund 3.67 19.77

Which is the best Nifty ETF in India?

Performance of ETFs

Schemes Latest Price NAV
LIC MF ETF – CNX Nifty 50 168.01 167.08
ICICI Prudential Nifty ETF 170.13 168.29
HDFC Nifty 50 ETF 169.38 167.52
Invesco India Nifty ETF 1,725.00 1,708.36

Which Nifty index fund is best?

Best Index Funds

  • DSP Equal Nifty 50 Fund Direct Growth. …
  • IDFC Nifty Fund Direct Plan Growth. …
  • UTI Nifty Index Fund-Growth Option- Direct. …
  • ICICI Prudential Nifty Index Plan Direct Growth. …
  • Taurus Nifty Index Fund-Direct Plan-Growth Option. …
  • Sundaram Nifty 100 Equal Wgt Dir Gr. …
  • UTI Nifty Next 50 Index Fund Direct Growth.

Which NSE ETF is best?


List of Equity ETFs listed on NSE
Issuer Name Name Underlying
Birla Sun Life AMC Birla Sun Life NIFTY ETF NIFTY 50 Index
ICICI Prudential AMC ICICI Prudential CNX 100 ETF NIFTY 100

Is Nifty an ETF?

Buy Nifty,
An ETF (Exchange traded fund) is a basket of securities that tracks an underlying index. For example, a Nifty 50 ETF tracks the composition of the Nifty 50 Index. When you buy a Nifty ETF, you are getting exposure to the 50 stocks that form the Index.

Why ETFs are not popular in India?

Costs are low but not enough: ETFs globally have a low-cost structure while in India the cost is little higher. If you add brokerage costs the costs go up further. 5. Lack of Awareness: Because of low margins, not enough has been done to make ETFs popular amongst investors in India.