Mutual fund capital gains
Two changes reshaped this: debt funds bought from April 2023 lost indexation and long-term treatment entirely, and from July 2024 equity rates moved to 20% short-term and 12.5% long-term. Both catch people out.
What kind of fund?
At least 65% in listed Indian equity — equity, ELSS, index, and aggressive hybrid funds.
The holding period is what decides short-term versus long-term, and the threshold differs by fund type.
The exemption is per financial year across all your equity redemptions, not per fund.
Tax payable
₹34,375
12.5% on ₹2,75,000 of taxable gain
Your gain
₹4,00,000
You keep
₹8,65,625
₹1,25,000 of the ₹1,25,000 annual exemption was applied to this redemption.
Why this rate
Equity fund held 12 months or more — long-term gains taxed at 12.5% after a ₹1,25,000 exemption per financial year.
- Treated as
- Long-term
- Holding period
- 3 yr 0 mo
What this does not include
The rules applied here
- Equity funds (65%+ in listed Indian equity): held under 12 months, 20% short-term. Held 12 months or more, 12.5% long-term after a ₹1,25,000 exemption per financial year across all your equity redemptions.
- Debt funds bought on or after 1 April 2023: always taxed at your slab rate, regardless of how long you hold them. No indexation, no long-term treatment. Units bought before that date follow older rules and are not modelled here.
- Gold, international and other non-equity funds: long-term after 24 months at 12.5% without indexation. The ₹1.25 lakh exemption does not apply to these.
- Exit load, stamp duty, STT, surcharge and cess are not deducted. Confirm the final figure with your chartered accountant before filing.
Important — This calculator is an illustration based on the assumptions you enter. It is not a projection or guarantee of returns, and it does not account for exit loads, stamp duty or the taxes payable on redemption. Actual returns will differ. Please consult us before acting on any figure shown here.
Want this turned into an actual plan?
A calculator gives you a number. Choosing the schemes, the split between equity and debt, and the order you fund your goals in is the part that needs a conversation. Leave your number and we will call you — there is no charge for the discussion, and no obligation to invest.
We use your details only to contact you about this enquiry. We do not sell or share them.