Ask us: On investments

Basic exemption limit for super senior citizens is ₹5,00,000. In other words, ₹5,00,000 of your taxable income is taxed at 0%.

A. 1) In case of long term capital gains (LTCG) for equity-oriented funds, LTCG up to ₹1 lakh is not taxable; any amount over and above ₹1 lakh will be taxed at 10% plus cess. For the purpose of total income, LTCG amount minus ₹1 lakh will be considered. 2) In case of debt mutual funds, the holding period is 3 years. Any redemption prior to 3 years is be considered as short-term capital gains and will be taxed as per your slab rates. Redemptions post 3 years is considered long-term capital gains and is taxed at 20% plus cess. However, for debt funds, the assessee is given the benefit of indexation in case of holding period above 3 years and respective long-term capital gains/loss be computed in such manner. 3) Switch between mutual fund schemes are treated as ‘transfer’ as defined in the Income Tax Act, 1961, and the respective capital gain is to be computed at the time of transfer. In your case, you are to compute the capital gains at the time of switch between mutual funds and also at the time of redemption post 11 months of the switch. Holding period of 11 months in any mutual fund scheme will be treated as short-term capital gains. In the case of equity-oriented gains, it will be taxed at 15% plus cess and in the case of others, it will be taxed at your slab rates.