Understanding mutual funds and how they’re taxed

Hi @shriramsingla

If you sell your units of an international equity fund and make a profit/loss, it will be subject to capital gains tax. The capital gains can be categorized into short-term or long-term, depending on the holding period of the units.

If the units are held for a period of less than 36 months, they would be considered STCG and subject to tax at your applicable income tax slab rates.

If the units are held for a period of more than 36 months, they would be considered LTCG and subject to tax at 20% with indexation benefit.