prpri Capital Gain Tax on Shares and Mutual Funds Capital Gain Tax on Shares and Mutual Funds

Categorization of Short term and Long Term Asset:

Type Termed as Short–Term If Holding period is: Termed as Long-term if Holding period is :
Equity funds (Note-1) Less than 12 months 12 months and more
Debt funds (Note-2) If less than 36 months More than 36 months
Hybrid equity-oriented funds If less than 12 months 12 months and more
Hybrid debt-oriented funds Less than 36 months 36 months and more
Equity Shares (Listed) Less than 12 months 12 months and more
Equity Shares (Unlisted) If less than 24 months More than 24 months

Note-

  • Equity funds are those mutual funds whose portfolio’s equity exposure exceeds 65%
  • Debt funds are those mutual funds whose portfolio’s debt exposure is in excess of 65%.

 Taxation Rates:

Fund type Short-term capital gains Long-term capital gains
Equity funds 15% Up to Rs 1 lakh – Nil Above Rs 1 lakh – 10%
Debt funds Taxed at the investor’s income tax slab rate 20% with Indexation
Hybrid equity-oriented funds 15% Up to Rs 1 lakh – Nil Above Rs 1 lakh – 10%
Hybrid debt-oriented funds Taxed at the investor’s income tax slab rate 20% with Indexation
Equity Shares (Listed) 15% Up to Rs 1 lakh – Nil Above Rs 1 lakh – 10%
Equity Shares (Unlisted) Taxed at the investor’s income tax slab rate 20% after Indexation (Resident)

10% without Indexation (Non Resident)

Author Bio

Qualification: CA in Practice
Company: Oswal & Heda Chartered Accountants
Location: Pune, Maharashtra, India
Member Since: 27 Mar 2021 | Total Posts: 10
Anubhav has over 5 years of professional experience in handling Audit & Assurance of various entities, Direct & Indirect Tax Advisory services, Project financing, Litigation Services, RERA, Preparation and Finalization of Income Tax returns, Monthly Compliance which includes GST, TDS and oth View Full Profile

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