Savings on Securities Transaction Tax (STT)

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The cost of merging schemes will come down significantly post June 1, 2013...

 

Come June 1 and investors can breathe a sigh of relief. The Securities Transaction Tax (STT) which is levied at the time of buying equity-oriented mutual funds from stock exchanges goes away then. Moreover, on redemption of equity funds, the STT will go down from the current 0.25 per cent to 0.001 per cent (See: Changing rates). What this amounts to is that on redemption of Rs 1 lakh, the STT will go down to Re 1 from the current Rs 250.

 

The move benefits AMCs which plan to merge their fund schemes as the cost of merging schemes will come down significantly. At present, each time such a merger happens, the units of the schemes which are being merged are sold and then new units bought into the scheme into which it is being merged. With this move, AMCs can think of merging schemes far more easily.

 

As for investors, the change in rates will curtail their losses, especially the double STT that they otherwise pay. Not only do they pay STT on all the transactions in the stock market when a fund buys or sells securities, they also pay STT when an investor sells units from the fund house. In the new scheme of things, investors will only pay STT when the fund manager buys and sells securities.

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

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Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund