What are the withdrawal charges? Are there any taxes to pay?
Scripbox does not have any withdrawal charges. However, at the time of withdrawal, depending on whether your investments are classified as short-term or long-term, you may incur exit loads (to the mutual fund company) or capital gains taxes.
Exit loads
| Type of Investment | Exit Load |
| Equity | 1% of sale proceeds if sold within 1 year of purchase |
| Debt | Usually none. Birla Sunlife funds impose a 0.5% exit load of sale proceeds if sold within 3 months of purchase. |
| Tax Saving | Not applicable as these equity investments cannot be sold before the 3 year lock-in period, thereby exceeding 1 year. |
Capital Gains taxes
| Type of Investment | Holding Period to be classified "Long Term" | Tax on Long-Term Capital Gains | Tax on Short-Term Capital Gains |
| Equity | 1 year from purchase | 10% capital gains tax on gains over Rs.1 Lakh. | 15% flat tax + cess |
| Debt | 3 years from purchase | 20% tax after “indexation”: a process by which you can adjust your purchase cost upwards based on inflation | Tax based on your income tax bracket (10% or 20% or 30% + cess) |
| Tax Saving | 3 year lock-in for these equity funds to be eligible for section 80C income tax deduction | No tax as 3 years would have passed before they are eligible for withdrawal | Not applicable as these investments cannot be sold before the 3 year lock-in period |
Hope we helped! Why not get started with your Scripbox.
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1800-200-1265