ganak.appDebt Mutual Funds Capital Gains Tax Calculator
Calculate tax on debt mutual funds in India under new 2023 rules. All gains taxed at slab rate regardless of holding period (no LTCG benefit). Covers liquid funds, money market, corporate bond funds, and gilt funds. Important changes from April 2023 affecting debt fund taxation.
Capital Gains Classification
Breakdown by holding period and applicable tax rates
Short-Term
Gains from assets held ≤24 months
Long-Term
Gains from assets held >24 months
Complete Tax Breakdown
Step-by-step calculation from purchase to final tax payable
Tax Rules: Debt Mutual Funds
Rates as per Finance Act 2024
What is Capital Gains Tax in India?
Understand the basics of capital gains taxation
Capital Gains Tax is levied on the profit you make when selling a capital asset for more than its purchase price. The tax applies to stocks, mutual funds, property, gold, and other investments.
Key Concepts:
- Capital Gain = Sale Price − Purchase Cost − Expenses
- Tax is only on the profit (gain), not the entire sale amount
- Gains are classified as Short-Term (STCG) or Long-Term (LTCG) based on holding period
- Different asset classes have different tax rates and rules
Short-Term vs Long-Term Capital Gains
Short-term vs long-term holding period and tax rates
The holding period determines whether your gain is Short-Term or Long-Term. Long-term gains typically enjoy lower tax rates to reward patient investing.
Capital Gains Tax Rates (FY 2024-25)
| Asset Type | LTCG Threshold | STCG Rate | LTCG Rate | Indexation | Exemption |
|---|---|---|---|---|---|
| Listed Equity / Equity MF | 12 months | 20% | 12.5% | No | ₹1.25 Lakh/year |
| Property / Land | 24 months | Slab Rate | 12.5% | No* | Sec 54/54EC/54F |
| Gold (Physical) | 24 months | Slab Rate | 12.5% | No | None |
| Gold (Listed ETFs / SGB) | 12 months | Slab Rate | 12.5% | No | None |
| REITs / InvITs | 12 months | 20% | 12.5% | No | ₹1.25 Lakh/year |
| Debt Mutual Funds | N/A | Slab Rate | Slab Rate | No | None |
| Unlisted Shares | 24 months | Slab Rate | 12.5% | No | None |
| Cryptocurrency / VDA | N/A | 30% | 30% | No | None |
| Other Assets | 24 months | Slab Rate | 12.5% | No | None |
Rates as per Finance Act (No. 2) 2024. 4% Health & Education Cess applies on all tax amounts. *For Property bought before July 23, 2024, you can choose the old tax regime (20% with Indexation) if it lowers your tax liability.
FIFO Rule for SIP & Mutual Funds
How First-In-First-Out applies to your gains
FIFO (First-In, First-Out) is the mandatory method for determining which units are sold when you redeem mutual fund units or sell shares bought over multiple dates.
How FIFO Works:
- When you redeem, your oldest purchases are sold first
- Each SIP installment is tracked separately with its own buy date
- A single redemption may have BOTH STCG and LTCG if some units crossed the holding threshold
- SIP installments are NOT averaged — each lot is taxed individually
Example: SIP Redemption
You invested ₹10,000/month via SIP for 18 months and redeem all units today. First 6 months of units (older than 12 months) → LTCG. Last 12 months of units → STCG. Result: Mixed tax treatment in a single redemption.
Capital Loss Set-Off Rules
Offset losses against gains to lower your tax
Capital losses can offset capital gains, reducing your tax liability. Understanding the rules helps you optimize tax planning.
Set-Off Rules:
- STCL can set off against BOTH STCG and LTCG
- LTCL can ONLY set off against LTCG (not STCG)
- Capital losses CANNOT offset salary, business, or other income
- Unabsorbed losses can be carried forward for 8 years
- You MUST file ITR before due date to carry forward losses
Quick Calculation Example
Worked examples showing capital gains calculations
Equity Shares (LTCG)
Bought: ₹1,00,000 (April 2023)
Sold: ₹1,50,000 (August 2024)
Holding: 16 months → LTCG
Gain: ₹50,000
Exempt up to ₹1.25 lakh → Full exemption
Tax: ₹0
Property Sale (LTCG)
Bought: ₹50 lakh (2020)
Sold: ₹1 crore (2024)
Gain: ₹50 lakh → LTCG
Reinvested: ₹30 lakh (Sec 54)
Taxable: ₹20 lakh
Tax @ 12.5% + Cess: ₹2.6 lakh
Frequently Asked Questions
Common questions about capital gains tax in India