I am considering to start a Systematic Invest Plan in some hybrid schemes. I want to know the tax treatment of these three schemes: L&T India Prudence Fund, Tata Balanced Fund, ICICI Prudential Balanced Fund. Are they treated as debt schemes or equity schemes for the purpose of taxation?
L&T India Prudence Fund, Tata Balanced Fund and ICICI Prudential Balanced Fund are equity-oriented balanced schemes. They invest at least 65 per cent of their portfolio in equity and because of this they qualify to be treated as equity schemes for the purpose of taxation. Investment in equity held over a year qualify for long-term capital gains tax which is nil at the moment. If investments are sold before a year, short-term capital gains will be taxed at 15 per cent.