The tax treatment on various mutual funds in year 2020-21 (or 2019-20)
| Fund type | Criteria for long term | Short term tax | Long term tax |
| Debt Mutual fund | if held >= 3 year | as per slab (upto 30%) + 4% cess | 20% + 4% cess (with indexation) |
| Equity based mutual funds | if held >= 1 year | 15% + 4% cess (no tax upto 1L. Additional gain taxed) | 10% + 4% cess (no indexation) |
| Traded Bond | if held >= 1 year | as per slab (upto 30%) + 4% cess | 10% + 4% cess (no indexation) |
Equity mutual funds bought before Jan 31, 2018 in Equity mutual funds
In case MF was purchased before Jan 31, 2018 will be, the acquisition price will be calculated as higher of
- Actual acquisition cost
- Price at Jan 31, 2018 or final sale prices whichever is lower.
