Mutual Fund Tax Calculator

Calculate your Short-Term and Long-Term Capital Gains tax on your mutual fund redemptions.

For equity: <12 months is STCG, >12 months is LTCG.

Capital Gains Summary

Gross Profit (Before Tax)

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Applicable Tax Rule

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Total Estimated Tax Payable (Including 4% Cess)

₹0

Net Profit in Your Hands (Post-Tax)

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Mutual Fund Taxation: How are LTCG and STCG Calculated?

Understanding capital gains tax on mutual funds is essential before you hit that redeem button. Your tax liability depends entirely on two factors: the category of the mutual fund (Equity vs. Debt) and your holding period (how long you stayed invested).

Using our Mutual Fund Tax Calculator, you can instantly determine your exact tax obligation. For Equity Funds, if you redeem within 12 months, it triggers Short-Term Capital Gains (STCG) taxed at a flat 20%. If you hold for more than 12 months, it triggers Long-Term Capital Gains (LTCG), which is taxed at a highly favorable 12.5%, and the first ₹1.25 Lakh of profit every financial year is entirely tax-free! For Debt Funds purchased after April 1, 2023, the rules are simpler but stricter: all gains are added to your income and taxed purely at your prevailing income tax slab rate.

Frequently Asked Questions About Mutual Fund Taxes

What is the ₹1.25 Lakh LTCG exemption?
For equity mutual funds and stocks, the government allows the first ₹1.25 Lakh of your long-term capital gains in a financial year to be completely tax-exempt. You only pay the 12.5% tax on the profit amount that exceeds this limit.
How are Debt Mutual Funds taxed?
For any debt mutual fund units purchased on or after April 1, 2023, the indexation benefit has been removed. All profits, regardless of how long you hold the fund, are added to your total income and taxed according to your income tax slab rate.
Do I need to pay tax if I don't redeem or sell my units?
No. Capital gains tax is only triggered when a "taxable event" occurs—meaning you actually sell or redeem your units and realize the profit. As long as your money stays invested in the fund, its growth is tax-deferred.

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