These are the mutual fund taxation rules for FY 2025-2026. These are derived from Manmohan Sethumadhavan’s fantastic Capital Gains Taxation Rules Ready Reckoner for FY 2025-2026.
Surcharge and cess rates are to be added to the tax rates shown below.
Equity-oriented MF (>= 65% Domestic Equity Shares)
Investments redeemed on or after 23 July 2024
- Holding period </= 12 months – 20%
- Holding period > 12 months – 12.5%
Redeemed between 1 April 2024 and 22 July 2024
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- Holding period </= 12 months – 15%
- Holding period > 12 months – 10%
Debt-oriented MF (FoF & ETF) (>= 65% bonds)
If you have purchased units on or before March 31st 2023
1. Redeemed between 1 April 2024 and 22 July 2024
- Holding period </= 36 months – Slab rate
- Holding period > 36 months – 20% with indexation
2. Redeemed on or after 23 July 2024
Non-ETFs
- Holding period </= 24 months – Slab rate
- Holding period > 24 months – 12.5%
ETFs
- Holding period </= 12 months – Slab rate
- Holding period > 12 months – 12.5%
If you have purchased units on or after April 1st 2023
- Always taxed as per slab, regardless of holding period.
All other mutual funds
If you have purchased units on or before March 31st 2023
1. Redeemed between 1 April 2024 and 22 July 2024
- Holding period </= 36 months – Slab rate
- Holding period > 36 months – 20% with indexation
2. Redeemed on or after 23 July 2024
Non-ETFs
- Holding period </= 24 months – Slab rate
- Holding period > 24 months – 12.5%
ETFs
- Holding period </= 12 months – Slab rate
- Holding period > 12 months – 12.5%
If you have purchased units on or after April 1st 2023
Redeemed between 1 April 2024 and 31 March 2025
- Always taxed as per slab, regardless of holding period.
Redeemed on or after 1 April 2025
Non-ETFs
- Holding period </= 24 months – Slab rate
- Holding period > 24 months – 12.5%
ETFs
- Holding period </= 12 months – Slab rate
- Holding period > 12 months – 12.5%