Equity Fund Tax Rules in India (2024+)

A fund is taxed as equity if it holds 65%+ in Indian stocks (includes most equity, ELSS and aggressive-hybrid funds).

• Short-term (held under 1 year): gains taxed at 20%.
• Long-term (held 1 year+): gains above ₹1.25 lakh per year taxed at 12.5%; the first ₹1.25L is exempt.
• Dividends/IDCW are added to income and taxed at your slab.

Example: ₹3L long-term gain → ₹1.25L exempt, ₹1.75L taxed at 12.5% = ₹21,875.

→ Estimate after-tax outcomes in the calculators.