(Last Updated On: August 30, 2017)

Mutual funds are instruments that pool in savings of various investors to invest them in shares, debt securities,money market securities etc.

Mutual funds further invest your money in :

  • Debt Instruments – Debt Mutual Funds.
  • Equity – Equity Mutual Funds.

You have been advised many times to invest your money in mutual funds by various experts.But,are you aware of the mutual fund taxation procedure.

Here we have simplified things for you to answer your queries regarding :

What is Tax on mutual fund ?

What is Short term Capital Gain and Long term Capital Gain in relation to Equity  funds ?

What is Short term Capital Gain and Long term Capital Gain on Non-Equity funds ?

How these Capital Gains on mutual funds are taxed ?

Here is the answer to all the above queries in a simplified manner.

Just,go through the below char,you will get t to know how Capital Gains from mutual funds are taxed in the short term and the long term :

Tax on Mutual Funds

 Period of Holding
Tax rate
Equity funds :
STCG - Short term Capital Gain
MF units held for less than 1 year
15%
LTCG - Long term Capital Gain
MF units held for > 1 year
Taxable @ 10% where LTCG>1 lakh (No indexation benefit) : As per amendment in Budget 2018
Non-Equity funds
STCG - Short term Capital Gain
MF units held for less than 3 years
As per Individual tax slab rates
LTCG - Long term Capital Gain
MF units held for > 3 years
20% (with indexation)
By Fintrakk.com

Download in pdf format : Tax on mutual funds

ALSO READ  10 Documents required for E-filing Income Tax Return in India : Keep them ready !

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adminTaxationEquity funds,LTCG,mutual fund,mutual fund taxation,Non-Equity funds,STCG,tax on debt funds,tax on equity funds,tax on mutual fundsMutual funds are instruments that pool in savings of various investors to invest them in shares, debt securities,money market securities etc. Mutual funds further invest your money in : Debt Instruments - Debt Mutual Funds. Equity - Equity Mutual Funds. You have been advised many times to invest your money in...Personal Finance Blog