The content below concerns taxation for retail individual investors only. It is applicable under the current taxation rules and could be subject to changes. Please consult a Chartered Accountant (CA) before filing your returns.
Mutual fund taxation depends on whether the fund is equity or non-equity oriented, and your holding period. The table below shows the Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) for both the funds:
| Mutual funds | Holding period | LTCG | STCG |
| Equity-oriented mutual funds | 12 months | 12.50% | 20% |
| Debt-oriented mutual funds acquired before 1st April 2023. Sold between 1st April 2024 and 22nd July 2024 | 36 months | 20% | Slab rate |
| Debt-oriented mutual funds acquired before 1st April 2023 and sold on or after 23rd July 2024 | 24 months | 12.5% | Slab rate |
| Debt-oriented mutual funds acquired post 1st April 2023 and sold on any date | No period of holding | Slab rate | Slab rate |
| Hybrid mutual funds sold between 1st April 2024 and 22nd July 2024 | 36 months | 20% | Slab rate |
| Hybrid mutual funds sold from 23rd July 2024 onwards | 24 months | 12.5% | Slab rate |
| International, Gold & Silver FoF mutual funds acquired on/after 1st April 2023. Sold before 31 March 2025 | No period of holding |
Slab rate |
Slab rate |
| International, Gold & Silver FoF mutual funds acquired on/after 1st April 2023. Sold on/after 1 April 2025 | 24 months | 12.5% | Slab rate |
Things to keep in mind
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Dividends from non-equity schemes will be given after deducting DDT (Dividend Distribution Tax), which is 28.84%.
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For any fund to qualify for the 12.5% LTCG benefit after 24 months, it must not hold more than 65% in debt and money market instruments.