Funds exempt from capital gains tax | Value Research Equity and equity-oriented mutual funds are exempt from capital gains tax after completion of one year
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Funds exempt from capital gains tax

Equity and equity-oriented mutual funds are exempt from capital gains tax after completion of one year

I want to know what category of funds are exempt from capital gains tax after one year. Are hybrid equity-oriented funds and hybrid asset allocation funds treated the same way as equity funds? This information is not available in most SID of funds. Please help.
- SRB Nath

Capital gains on equity funds are exempt from tax after completion of a year. Balanced funds (Hybrid equity-oriented funds) with an equity component of 65% also enjoys the same tax benefit. Asset Allocation funds are treated as non-equity funds for the purpose of taxation and short-term capital gains on them are taxed at the applicable tax slab of the investor and long-term capital gains are taxed at 20% with indexation benefit.


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