Mutual Fund Taxation

This is a plain-English snapshot of how mutual fund returns are taxed in India today. It is not tax advice. Rules change, and your own situation matters — check with a tax professional before you redeem.

Equity-oriented funds

If you sell within 12 months, the gain is short-term and taxed at 20%.

If you sell after 12 months, the gain is long-term. Long-term equity fund gains above ₹1.25 lakh in a financial year are taxed at 12.5%. Gains up to that limit are not taxed.

Specified mutual funds and most debt funds

Bought on or after 1 April 2023: gains are added to your income and taxed at your slab rate, no matter how long you hold.

Older debt-fund units can still follow earlier long-term rules, including indexation in some cases.

What this means on Monzy

We do not deduct tax, file returns, or partner with any broker.

The “Start Investing” links take you to the platform of your choice. Tax is handled there, or when you file your return.

Always read the scheme documents. When in doubt, ask a CA.