Mutual Fund Tax Calculator
Estimate tax on mutual fund redemptions for equity, hybrid and debt funds under the rules in force since 23 July 2024.
About the Mutual Fund Tax Calculator
Equity funds (at least 65% in Indian shares): gains after 12 months are long-term, taxed at 12.5% above ₹1.25 lakh a year combined across equity; earlier gains are taxed at 20%. Hybrid funds with 35–65% equity: long-term after 24 months at 12.5% without indexation, otherwise slab rate. Debt funds and funds with under 35% equity bought from 1 April 2023 are taxed at slab rates regardless of holding period.
The formula
Tax = (gain − exemption) × rate × 1.04
Worked example
Example: Tax (incl. 4% cess) = ₹12,350
- Inputs: Fund type: Equity (≥ 65% Indian equity); Amount invested: ₹5,50,000; Redemption value: ₹7,70,000; Held for: 33 months; LTCG exemption already used this year (equity): ₹0; Your slab rate: 30%.
- Formula: Tax = (gain − exemption) × rate × 1.04
- Result: Tax (incl. 4% cess) = ₹12,350
Things to keep in mind
- For SIPs, each instalment has its own purchase date and holding period (first in, first out).
Questions people ask
What is tax harvesting?
Booking up to ₹1.25 lakh of long-term equity gains each year tax-free and reinvesting.
Is there TDS for residents?
No TDS on capital gains for residents; you pay when filing.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.