Equity and equity-oriented mutual funds are exempt from capital gains tax after completion of one year
16-Sep-2015 •Research Desk
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.
