How are mutual fund gains taxed?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerEquity mutual funds are taxed like shares — STCG (held up to 12 months) at 20%, LTCG (over 12 months) at 12.5% above ₹1.25 lakh a year. Debt mutual funds bought on or after 1 April 2023 are taxed at your slab rate regardless of holding period, with no long-term benefit.

Equity funds

Treated like listed shares: 20% STCG, 12.5% LTCG over the ₹1.25 lakh annual exemption.

Debt funds

For units bought on/after 1 April 2023, gains are taxed at your slab rate whatever the holding period. Confirm current rules.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.