Docs Category: Taxation and Financial Planning

The gains from mutual funds are taxed as Capital Gain Tax. The tax rates vary basis the holding period of the investor (Short Term or Long Term). Gains from sale of mutual fund units held over 1 year are considered as Long Term Capital Gains. The gains exceeding ₹ 1.25 lakh in a financial year

Equity Linked Savings Scheme (ELSS) funds qualify for tax deductions up to ₹1.5 lakh under Section 80C of Income Tax Act. ELSS are equity-oriented mutual funds with a 3-year lock-in period. This benefit is applicable if you choose the old tax regime only.