I sold Franklin India Ultra Short Bond Fund -- Super Institutional Plan (Growth) after holding it for a year. What is my tax liability? And at what rate?
- N Rajamani
If investments in debt mutual funds are sold before three years, the returns would attract short-term capital gains tax. Short-term capital gains are added to the income and taxed as per the Income Tax slab applicable to the investor. That means, the rate would depend on the Income Tax slab you are in. For example, if you are in the highest Income Tax slab of 30 per cent, your short-term gains would be taxed at 30 per cent.
This article was originally published on December 15, 2015.
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