Mutual Fund Tax Calculator
Calculate the capital gains tax on your mutual fund redemptions — equity, debt or hybrid — using current FY 2025-26 rules.
Indicative for FY 2025-26. Consult EvoTax for SIP/FIFO computation and exact filing.
How mutual funds are taxed in India
Mutual fund taxation depends on the fund type and how long you held the units. Equity funds (and equity-oriented hybrid funds, with 65%+ in equity) held over 12 months are long-term: taxed at 12.5% on gains above the ₹1.25 lakh annual exemption. Held 12 months or less, they are short-term and taxed at 20%.
Debt funds bought on or after 1 April 2023 no longer get long-term indexation benefits — all their gains are added to your income and taxed at your slab rate, regardless of holding period.
These are indicative figures for FY 2025-26. Systematic withdrawals, switches and dividend options have their own treatment — EvoTax can compute your precise mutual fund tax and reconcile it with your AMC statements.
Frequently Asked Questions
How are equity mutual funds taxed?
Equity mutual funds held over 12 months attract 12.5% long-term capital gains tax on gains above ₹1.25 lakh per year. Held 12 months or less, gains are short-term and taxed at 20%.
How are debt mutual funds taxed now?
For debt funds purchased on or after 1 April 2023, all capital gains are taxed at your income tax slab rate with no long-term indexation benefit, regardless of how long you hold them.
What is the ₹1.25 lakh exemption?
Long-term capital gains on equity funds (and listed shares) up to ₹1.25 lakh in a financial year are completely tax-free. Only gains above this are taxed at 12.5%.
Are SIP investments taxed differently?
Each SIP instalment is treated as a separate purchase for holding-period purposes (FIFO). So when you redeem, some units may be long-term and others short-term. We compute this correctly from your statement.
Do I pay tax if I switch between funds?
Yes. Switching from one fund (or plan) to another is treated as a redemption and a fresh purchase, so capital gains tax applies on the switch. We account for this in your filing.
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