Ch.8 · Capital Gains Tax on Mutual Funds · easy
How are equity mutual fund gains taxed for investments held less than 12 months?
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EXPLANATION
Short Term Capital Gains (STCG) on equity mutual funds (holding period less than 12 months) are taxed at a flat rate of 15% under Section 111A of the Income Tax Act, regardless of the investor's income tax slab. Applicable surcharge and cess are added. This concessional rate applies to gains from listed equity-oriented schemes.
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