Mutual Fund Taxation
Taxation of Mutual Funds in India (FY 2024-25)
A simple overview of short-term capital gains, long-term capital gains, dividend taxation, surcharge and cess for major mutual fund categories.
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
Income > ₹50 lakh but ≤ ₹1 crore
10%
Income > ₹1 crore but ≤ ₹2 crore
15%
Income > ₹2 crore but ≤ ₹5 crore
25%
Income > ₹5 crore
37%
Health and Education Cess: An additional 4% on the total tax, inclusive of surcharge.
Note:
The above information is sourced from AMFI and is for educational purposes only. Tax laws are subject to change; investors should consult a qualified tax advisor for the most current information.