How are mutual fund returns taxed?

How are mutual fund returns taxed?

  • Equity Mutual Funds:
  • Short-Term Capital Gains (STCG): 15% (if held for less than 1 year).
  • Long-Term Capital Gains (LTCG): 10% (if gains exceed ₹1 lakh in a financial year).
  • Debt Mutual Funds:
  • Taxed as per individual tax slab (if held for less than 3 years).
  • 20% with indexation benefit (if held for more than 3 years).

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