How will mutual funds be taxed if sold this financial year?

How are gains from equity and debt mutual funds taxed if sold during the current financial year, 2024-25? - Iranna Karemani The full Union Budget, presented on July 23, 2024, introduced two key changes regarding the taxation of mutual funds. 1. Higher capital gains tax rates on equity mutual funds. 2. Removal of indexation benefits. These changes impact how gains on mutual funds are taxed, depending on when the units were purchased and sold. Taxation on equity mutual funds When you sell Holding period Tax rate On or after July 23, 2024 One year or less 20.0% On or after July 23, 2024 More than one year 12.5%

This article was originally published on March 25, 2025.