How are long-term and Short term capital gains calculated in Mutual Funds?
Capital gains on mutual funds are determined based on the holding period of the investment and the type of mutual fund. Here’s how they are calculated:
| Fund Category | Short-Term Capital Gains (STCG) | Long-Term Capital Gains (LTCG) |
| Indian Equity Funds/ETFs & Equity-Oriented Hybrid Funds | 20% (if held for less than 1 year) | 12.5% (on gains above ₹1.25 lakh if held for over 1 year) |
| Debt Funds/ & Debt-Oriented Hybrid Funds | Taxed as per income tax slab rate | Taxed as per income tax slab rate |
| All FoFs (holding less than 65% in debt) / International Funds / Gold Funds / ETFs | Taxed as per income tax slab rate | 12.5% if held for over 2 years |
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