How Mutual Funds will be taxed now – Budget 2018-19

Manoj Chahar

7 years ago

How Mutual Funds will be taxed now – Budget 2018-19

Equity Mutual Funds

Fund Type	Short Term Capital Gain	Long Term Capital Gain (> 1 year)	Dividend Tax
Equity Fund ELSS Fund (tax saving) Hybrid Fund – Balanced (Aggressive or Equity oriented) Arbitrage Fund	15%	Gain up-to 1Lac–Zero Tax exempted Gain > 1lac – 10% Tax without indexation Cost on oldinvestments based on 31st Jan 2018 closing price##	10%

## Which means, if you have invested INR 100 on 1^st Jan 2016, and if you redeem on 2^nd Feb 2018 @ INR 155, LTCG will be calculated based on the price on 31^st Jan 2018. Let’s say on 31^st Jan 2018, the value was INR 150, in-short you have to calculate LTCG on INR 5 only, provided the total gain exceeds 1lac.

** Dividend Tax; after adding 12% surcharge & 4% cess = 11.65%
** Capital Gain tax calculated(Short term or Long term), will also include surcharge based on your total income and 4% cess.

Debt Mutual Funds

Fund Type	Short Term Gain	Long Term Gain (> 3 years)	Dividend Tax
Debt Fund Liquid/ Money Market Fund Hybrid Fund – MIP (Conservative or Debt oriented)	your personal Tax rate	20% after indexation	25%

** Dividend Tax; after adding 12% surcharge & 4% cess = 29.12%** Capital Gain tax calculated (Short term or Long term), will also include surcharge based on your total income and 4% cess.