Mutual Fund Taxation on WebNotes

Parag Parikh Arbitrage Fund Taxation

Sat, 16 May 2026 00:00:00 +0000

The Parag Parikh Arbitrage Fund is the PPFAS Mutual Fund arbitrage scheme, launched on 27 October 2023 following an NFO that ran from 23 October 2023 to 27 October 2023. The scheme is benchmarked to the Nifty 50 Arbitrage Total Return Index and operates under the SEBI Arbitrage Fund category mandate defined in the SEBI scheme rationalisation circular 2017 , which requires a minimum 65 per cent in equity and equity-related instruments, primarily through cash-futures arbitrage strategies.

Parag Parikh Conservative Hybrid Fund Taxation

Sat, 16 May 2026 00:00:00 +0000

The Parag Parikh Conservative Hybrid Fund is the PPFAS Mutual Fund conservative-hybrid scheme, launched on 28 May 2021 following an NFO that ran from 7 May 2021 to 21 May 2021. The scheme is benchmarked to the CRISIL Hybrid 85+15 Conservative Index TRI and follows the SEBI Conservative Hybrid Fund category mandate under the SEBI scheme rationalisation circular 2017 , which requires 10 per cent to 25 per cent in equity and equity-related instruments and 75 per cent to 90 per cent in debt instruments.

Parag Parikh ELSS Tax Saver Fund and Section 80C Eligibility

Sat, 16 May 2026 00:00:00 +0000

The Parag Parikh ELSS Tax Saver Fund is the PPFAS Mutual Fund Equity Linked Savings Scheme (ELSS), launched on 4 July 2019 and originally registered as the Parag Parikh Tax Saver Fund. The scheme is eligible for Section 80C deduction of up to Rs 1.5 lakh per assessee per financial year under the Income-tax Act, 1961 , subject to compliance with the Equity Linked Savings Scheme, 2005 (Notification No. 226/2005 dated 3 November 2005) issued by the Department of Economic Affairs, Ministry of Finance, and the SEBI Mutual Funds Regulations 1996 ELSS category framework.

Parag Parikh Liquid Fund Tax Treatment

Sat, 16 May 2026 00:00:00 +0000

The Parag Parikh Liquid Fund is the PPFAS Mutual Fund liquid scheme, launched on 9 May 2018 and benchmarked to the CRISIL Liquid Debt B-I Index. As a debt-oriented mutual fund under the SEBI Mutual Funds Regulations 1996 liquid-fund category, the scheme is taxed under the debt-oriented mutual fund framework, which was materially restructured by the Finance Act 2023 through the insertion of Section 50AA into the Income-tax Act, 1961 , effective 1 April 2023.

PPFCF International Allocation: Tax Implications

Sat, 16 May 2026 00:00:00 +0000

The international equity allocation of the Parag Parikh Flexi Cap Fund (PPFCF) carries significant tax implications under the Income-tax Act, 1961 , shaped principally by the 65 per cent Indian-equity threshold that the scheme must maintain to qualify as an equity-oriented mutual fund under Section 112A and Section 111A . PPFCF allocates up to 35 per cent of its assets to overseas listed equities (including Alphabet Inc., Microsoft Corporation, Amazon.com Inc., Meta Platforms Inc., and historically Berkshire Hathaway Class B), with the residual at least 65 per cent in Indian listed equities and a small debt-and-cash component.

Taxation of Parag Parikh Flexi Cap Fund (PPFCF)

Sat, 16 May 2026 00:00:00 +0000

The taxation of the Parag Parikh Flexi Cap Fund (PPFCF) is governed by the equity-oriented mutual fund tax regime under the Income-tax Act, 1961, as the scheme maintains a minimum 65 per cent Indian equity allocation that satisfies the statutory definition of an equity-oriented fund. Capital gains on PPFCF units accordingly fall under Section 112A for long-term capital gains (LTCG) and Section 111A for short-term capital gains (STCG), and not under the residual capital-gains provisions that apply to debt-oriented mutual funds or international fund-of-fund schemes.