INCOME TAX15 Sept 2026
Same mutual fund category, different capital gains tax? How a scheme's portfolio can change your tax bill | Mint
Your mutual fund's category doesn't decide your capital gains tax; its actual portfolio does. A scheme needs at least 65% in listed Indian shares to be taxed as equity-oriented. Below that, gains are taxed at your slab rate. On a ₹10 lakh gain held 14 months, that's roughly ₹3 lakh instead of ₹1.09 lakh. Check your fund's real holdings before you redeem.
Key Statutory Highlights
- For equity-oriented tax treatment, at least 65% of the scheme must be in shares of Indian companies listed on a recognised stock exchange, measured on the annual average of monthly averages.
- Foreign stocks, gold, silver, REITs and InvITs do not count towards that equity test.
- From 1 April 2026 these rules sit in Sections 76, 196, 197 and 198 of the Income-tax Act, 2025, and the rates did not change.
Actionable Advice for Taxpayers / Founders:Before you redeem, look up the scheme's actual portfolio allocation rather than trusting its category label, since the tax rate and holding-period threshold may differ from what you expect.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: