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Bajaj Small Cap
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ICICI Multi Asset
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Taxation on Mutual Funds
Capital gains tax rates for FY 2025-26 (New Regime)

Equity Funds STCG

Holding PeriodTax Rate
Less than 1 year20%
More than 1 year12.5% on gains above ₹1.25 lakh
LTCG exemption: First ₹1.25 lakh of long-term gains per financial year is tax-free. Gains above that are taxed at 12.5% (no indexation).

Debt Funds STCG

Holding PeriodTax Rate
Less than 24 monthsSlab rate (your income tax bracket)
More than 24 months12.5% (no indexation)
Debt funds bought on or after 1 April 2023: gains always taxed at your slab rate, regardless of holding period. Older holdings follow the pre-April 2023 rules with indexation benefit.

Hybrid Funds (Equity-Oriented)

Holding PeriodTax Rate
Less than 1 year20%
More than 1 year12.5% on gains above ₹1.25 lakh
Treated as equity if domestic equity allocation is 65% or more. Taxed as debt funds otherwise.

ELSS (Tax Saver Funds)

FeatureDetail
Lock-in period3 years
Tax on redemption12.5% LTCG above ₹1.25 lakh
80C deductionUp to ₹1.5 lakh
ELSS offers dual benefit: tax deduction under Section 80C at investment time, plus equity taxation at redemption after 3-year lock-in.
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ARN 153266 — Fully compliant mutual fund distributor regulated by AMFI.
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Brokerji MF Research
For research and educational purposes only — not investment advice. Always consult a SEBI-registered advisor before investing.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully.