Mutual Fund Taxation#
Equity Funds#
| Type | Holding Period | Tax Rate |
|---|---|---|
| LTCG | >1 year | 12.5% |
| STCG | ≤1 year | 20% |
Debt Funds#
Taxed as per income slab (no special rate)
ELSS Funds#
- Qualify under Section 80C
- 3-year lock-in
- LTCG 12.5% after lock-in
Dividend Taxation#
- Dividend received is taxable in hands of investor
- No dividend distribution tax (DDT) now