On redeeming any Mutual Fund, you are eligible to pay taxes based on your holding period in that Mutual Fund. 


In the case of Equity and Hybrid Equity-Oriented Funds, any MF held for less than 12 months will attract STCG and any MF held for more than 12 months will attract LTCG. 


  • STCG on the redemption of equity-oriented Mutual Funds is taxed at a flat rate of 15%.

  • LTCG on the redemption of equity-oriented Mutual Funds is taxed at a flat rate of 10% for gains exceeding Rs 1 lakh in a financial year without indexation benefit. Gains up to Rs 1 lakh are exempt from tax.


In the case of Debt & Hybrid Debt-Oriented Funds, all gains (irrespective of short-term or long-term) will be added to your taxable income and taxed at the slab rate.