How are capital gains from the sale of mutual funds taxed?
Capital gains earned on mutual funds are taxed based on:
1. Holding period
2. Type of mutual fund
| Fund Type | Holding Period | Type of Capital Gain | Tax Rate |
|---|---|---|---|
| Equity and equity-oriented funds | Less than 1 year | Short-Term Capital Gains (STCG) | 15% of gain |
| Equity and equity-oriented funds | More than 1 year | Long-Term Capital Gains (LTCG) | i. 10% of gains exceeding Rs. 1 lakh. ii. Gains cannot be indexed. iii. Gains are calculates as per the grandfathering clause |
| Debt and debt-oriented funds | All | NA | As per your income tax slab |
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