Taxation on mutual funds

how tax is calculated on mf for long and short time

For equity funds, long term capital gain (LTCG) tax is zero if the units are held for more than 365 days. If held under 365 days, then short term capital gains (STCG) are applicable @ 15%.

Dividends received are tax-free.

ELSS funds have a lock in of 3 years, which means zero long term capital gains tax. You also have the benefit of 80C when you invest in ELSS.

Debt funds if held for more than 36 months are taxed at 20% after indexation benefit.

Iā€™d suggest you give this a read - although this module does not talk about MFs, it will give you a sense of indexation. LTCG, STCG etc.


i want to invest my trading earning in mf by sip method .is there any mf providing flexibility of any sip amount according to my wish as every month trading earning is highly varaible .thanx in advance