# Mutual Fund Tax Filing

> Equity-oriented funds are taxed like listed shares: 20% if held up to 12 months and 12.5% above ₹1.25 lakh a year if held longer. Debt funds (more than 65% in debt) bought from 1 April 2023 are taxed at slab rates regardless of holding period. Other funds — such as gold, international and many hybrid funds — are long-term after 24 months and taxed at 12.5%, or at slab rates if sold sooner. IDCW payouts are taxed at slab rates.

Practice: Trader & Investor Tax — https://www.industax.com/services/investor-tax/

Each SIP instalment is a separate purchase, and redemptions are matched first-in-first-out, so one redemption can contain short- and long-term gains. Consolidated account statements from CAMS/KFintech give the details we need.

We classify every scheme by its tax category for the year (the rules changed in April 2023, July 2024 and April 2025), compute gains with grandfathering where relevant, and report them in the right schedules.

## Key facts

| Item | Detail |
| --- | --- |
| Equity funds | ≤ 12 months 20%; > 12 months 12.5% above ₹1.25 lakh |
| Debt funds (bought from April 2023) | Slab rates |
| Gold, international, other funds | 12.5% after 24 months; slab rates before |
| IDCW | Slab rates; TDS above ₹10,000 |
| Matching | First-in-first-out by unit |

## Who needs this

- SIP and lump-sum investors
- Investors who switched or redeemed funds
- Investors in gold and international funds

## What's included

- Scheme-wise classification
- FIFO gain computation
- ITR schedules
- Harvesting suggestions

## Documents

- CAMS/KFintech capital gains statements
- Demat statements for ETFs

## Process

1. **Collect** — Capital gains statements gathered.
2. **Classify** — Each scheme's tax category applied.
3. **Report** — Gains filed in the right schedules.

## FAQs

### Is switching between funds taxable?

Yes. A switch is a redemption from one scheme and a purchase in another, so capital gains arise on the switch, even within the same fund house.

### Why is my old debt fund taxed differently?

Debt fund units bought before 1 April 2023 can still give long-term gains (12.5% without indexation if sold after 23 July 2024 and held over 24 months). Units bought later are taxed at slab rates.

### Do I need to report mutual funds with no redemption?

Not as income, but some ITR schedules ask for asset details if total income is high. Domestic mutual funds aren't part of Schedule FA.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/services/investor-tax/mutual-fund-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.