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Taxation on Kotak World Gold Fund

Kotak World Gold fund is a non-equity fund for taxation purposes. Debt fund tax laws will apply to it

I want to sell units of Kotak World Gold Fund. What will be the long term and short term capital gains tax applicable? After holding for how many years will long term capital gain tax be applicable ?
- Tejpreet Wasu

Long term capital gains tax will be applicable if you have held the fund for 3 years or more. Kotak World Gold Fund is a non-equity fund as per the Income Tax Act, as it does not invest 65% of its assets in domestic equities. If you are withdrawing investments before completing three years, the gains will attract short-term capital gains tax payable as per your current income tax slab. If you have held the fund for three years, capital gains will be taxed at 20 per cent with indexation.

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