What is the taxation on international mutual funds after budget 2025?

Income Tax Income from Capital Gains
1

How would international mutual funds gains will be taxed after budget 2025? What are some tips to be better tax efficient with such investments?

2

Hey @VR_K

As per the Budget 2025:

  • If the holding period is less than 24 months, the gains will be treated as short-term capital gains (STCG) and taxed at the applicable income tax slab rate.
  • If held for more than 24 months, the gains will qualify as long-term capital gains (LTCG) and will be taxed at a flat rate of 12.5% without the benefit of indexation.

Additionally, the Budget has made income up to ₹12 lakh effectively tax-free, as any income taxed at slab rates is eligible for a rebate under Section 87A.

Hope this helps!