How Mutual Funds will be taxed now – Budget 2018-19
Equity Mutual Funds
| Fund Type | Short Term Capital Gain | Long Term Capital Gain (> 1 year) | Dividend Tax |
|
15% |
|
10% |
## Which means, if you have invested INR 100 on 1st Jan 2016, and if you redeem on 2nd Feb 2018 @ INR 155, LTCG will be calculated based on the price on 31st Jan 2018. Let’s say on 31st Jan 2018, the value was INR 150, in-short you have to calculate LTCG on INR 5 only, provided the total gain exceeds 1lac.
** Dividend Tax; after adding 12% surcharge & 4% cess = 11.65%
** Capital Gain tax calculated(Short term or Long term), will also include surcharge based on your total income and 4% cess.
Debt Mutual Funds
| Fund Type | Short Term Gain | Long Term Gain (> 3 years) | Dividend Tax |
|
your personal Tax rate |
|
25% |
** Dividend Tax; after adding 12% surcharge & 4% cess = 29.12%** Capital Gain tax calculated (Short term or Long term), will also include surcharge based on your total income and 4% cess.
