Ch.8 · Capital Gains Tax on Mutual Funds · medium
What is the Long Term Capital Gains (LTCG) tax rate on equity mutual funds for gains above ₹1 lakh?
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EXPLANATION
As per the Finance Act 2024, LTCG on equity mutual funds (holding period 12 months or more) is taxed at 12.5% without indexation benefit for gains exceeding ₹1.25 lakh per financial year. Prior to July 23, 2024, the rate was 10% above ₹1 lakh exemption. The ₹1.25 lakh annual exemption applies to the aggregate LTCG from equity funds and listed equity shares.
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