Mutual Taxation in India
Taxation of Mutual Funds in India (FY 2024-25)
1. Equity-Oriented Funds
| Type of Gain | Tax Rate (Before July 23, 2024) | Tax Rate (On or After July 23, 2024) |
|---|---|---|
| Short-Term Capital Gains (STCG) | 15% | 20% |
| Long-Term Capital Gains (LTCG) | 10% on gains exceeding ₹1,25,000 | 12.5% on gains exceeding ₹1,25,000 |
Dividend Income: Taxed at the applicable income tax slab rate of the investor.
2. Specified Mutual Funds
| Type of Gain | Tax Rate |
|---|---|
| Short-Term Capital Gains (STCG) | Taxed at the investor's applicable income tax slab rate |
| Long-Term Capital Gains (LTCG) | Not applicable |
Dividend Income: Taxed at the applicable income tax slab rate of the investor.
3. Other Mutual Funds (Including Debt Funds)
| Type of Gain | Tax Rate |
|---|---|
| Short-Term Capital Gains (STCG) | Taxed at the investor's applicable income tax slab rate |
| Long-Term Capital Gains (LTCG) | 20% with indexation benefits |
Dividend Income: Taxed at the applicable income tax slab rate of the investor.
Surcharge and Cess
Surcharge:
- 10% for income > ₹50 lakh but ≤ ₹1 crore
- 15% for income > ₹1 crore but ≤ ₹2 crore
- 25% for income > ₹2 crore but ≤ ₹5 crore
- 37% for income > ₹5 crore
Health and Education Cess: An additional 4% on the total tax (inclusive of surcharge).
Note:The above information is sourced from the Association of Mutual Funds in India (AMFI). Tax laws are subject to change; investors are advised to consult with a tax advisor for the most current information.