Depends on which category of funds you invest in. The taxation is different for equity, debt, hybrid and arb funds.
For Equity funds, it is 10% LTCG
For Debt funds, it is 20% for long term and short term gains will be taxed based on your personal income slab.
For Arbitrage funds, it is 10% for long terms and 15% for short term.
For Hybrid balanced funds, it is 10% for long-term and 15% for short term. For hybrid Monthly Income Plans (MIP) 20% for long term and short terms taxation is based on your personal income slab.
No.
ELSS funds are an just like a normal equity fund. The only difference is that ELSS funds have a lock-in of 3 years and you get a tax benefit of up to Rs.1,50,000 under section 80C. Once the lock-in expires it’s just like a normal equity fund and you can either continue to hold it or redeem it. Just because the lock-in expires doesn’t mean the fund will shut down.
