3 Replies to “What is the tax liability in case of revenue from Mutual Fund Investment (capital apprecialtion)?”


  1. Equity Mutual fund

    Short term —- 15% tax on earning if invested for less then a year.

    Long term capital gain — 0% if invested for more then a year.

    Debt mutual Fund —

    Short term — 15%

    Long term — indexation benifit in calculating tax


  2. Tax implications of Mutual Funds.

    Redeeming an Equity Fund held for > 1 year.

    No capital gain tax.
    You pay only STT.

    Redeeming an Equity Fund held for < 1 year.You pay Capital gain tax + surcharge + cess @ 16.48% + STT. Or Capital gain tax + cess @ 15.45% + STT.Redeeming a Dept Fund held for > 1 year.

    You pay capital gain tax @ 10% ( without indexation ).
    Or
    You pay capital gain tax @ 20% ( with indexation ).
    Whichever is less.
    Indexed or inflated purchase cost = Purchase cost X Present Index / Purchase Index

    Redeeming a Dept Fund held for < 1 year.You pay tax on capital gain at the personal tax rate applicable to you.





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