Tag Archive: Mutual Funds tax slab

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


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
  • Gain up-to 1Lac–Zero Tax
  • Gain > 1lac – 10% Tax
    without indexation
  • Cost on oldinvestments
    based on 31st Jan 2018 closing price##

## Which means, if you have invested INR 100 on 1st Jan 2016, and if you redeem on 2nd Feb 2018 @ INR 155, LTCG will be calculated based on the price on 31st Jan 2018. Let’s say on 31st 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.