Ch.8 · Capital Gains Tax on Mutual Funds · medium
What is 'Section 112A' and how does it apply to equity mutual fund LTCG?
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EXPLANATION
Section 112A governs taxation of LTCG from equity-oriented mutual funds and listed equity shares on which STT has been paid. Gains up to ₹1.25 lakh per financial year are exempt; gains above this threshold are taxed at 12.5% (plus applicable surcharge and cess) without the benefit of indexation. Holding period must exceed 12 months to qualify for this concessional rate.
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