# Mutual Fund Tax Calculator FY 2026-27: Equity and Debt > Mutual fund tax calculator for FY 2026-27: tax on redeeming equity, debt, hybrid or gold funds, with holding periods, the INR 1.25 lakh limit and slabs. Source: https://trykosh.com/tools/mutual-fund-tax-calculator Free tool - Capital gains # Mutual fund tax calculator for equity and debt funds How a mutual fund redemption is taxed depends on the type of fund, when you bought it and how long you held it. Choose your fund type and Kosh applies the right rule. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax on redemption INR 3,250 Long-term capital gain Gain**INR 1,50,000** Effective rate**2.2%** Post-tax value**INR 4,46,750** Invested **INR 3,00,000**Gain kept **INR 1,46,750**Tax **INR 3,250** Redemption value INR 4,50,000 − Cost of units INR 3,00,000 Long-term capital gain INR 1,50,000 − Tax-free equity LTCG (INR 1.25 lakh a year) INR 1,25,000 LTCG tax at 12.5% (112A) INR 3,125 \+ Health and education cess (4%) INR 125 Tax because of this gain INR 3,250 Equity funds held over 12 months: 12.5% above INR 1.25 lakh a year. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-mutual-fund-tax-calculator) ## How the mutual fund tax calculator works Equity-oriented funds (at least 65% in Indian shares, including ELSS, index funds and most arbitrage funds) are taxed like shares: 20% if held 12 months or less, and 12.5% on long-term gains above INR 1.25 lakh a year. Debt funds bought on or after 1 April 2023 are 'specified mutual funds' under section 50AA. Their gains are always treated as short-term and taxed at your slab rate, however long you hold. From FY 2025-26 the definition covers funds with more than 65% in debt and money-market instruments. Debt funds bought before 1 April 2023, and funds that are neither equity-oriented nor specified (hybrid funds with 35% to 65% equity, gold funds, international fund of funds), are long-term after 24 months and taxed at 12.5% without indexation. Non-equity ETFs listed on an exchange need only 12 months. For SIPs, each instalment is a separate purchase, and units are redeemed first in, first out. If you redeem in one go, older units may be long-term while recent ones are short-term. The calculator treats the amount you enter as one lot, so for mixed lots run it once per lot. Gain = redemption value − cost of units Equity 20% (≤ 12 months) or 12.5% above INR 1.25 lakh Debt bought from April 2023 slab rate Other funds slab (≤ 24 months) or 12.5% ## Worked example: Neha redeems a debt fund bought in 2024 Neha, a INR 14 lakh earner in Hyderabad, put INR 5 lakh into a short-duration debt fund in 2024 and redeems it for INR 5.6 lakh after 30 months. Because she bought after 1 April 2023, there's no long-term benefit: the INR 60,000 gain is added to her income, which sits in the 15% slab. Tax is INR 9,000 plus INR 360 cess, or INR 9,360. Tax on redemption INR 9,360 Taxed as income at your slab Gain**INR 60,000** Effective rate**15.6%** Post-tax value**INR 5,50,640** Invested **INR 5,00,000**Gain kept **INR 50,640**Tax **INR 9,360** Redemption value INR 5,60,000 − Cost of units INR 5,00,000 Taxed as income at your slab INR 60,000 Extra tax at your slab rates INR 9,000 \+ Health and education cess (4%) INR 360 Tax because of this gain INR 9,360 Debt funds bought on or after 1 April 2023 have no long-term benefit: the gain is added to your income. [Load this example into the calculator ->](?fund=debtNew&invested=500000&value=560000&income=1400000#calculator) ## Good to know - Switching between schemes, or from a regular to a direct plan of the same fund, counts as a redemption and can create a taxable gain. - IDCW (dividend) payouts are taxed at your slab rate as income, with 10% TDS above INR 10,000 a year per fund house. - Exit loads reduce your redemption value, which reduces the gain; STT on equity fund redemptions is not deductible. - ELSS units have a 3-year lock-in, so they are always long-term when redeemed. ## Frequently asked questions How are debt mutual funds taxed now? Debt funds bought on or after 1 April 2023 are taxed at your slab rate on redemption, with no long-term rate and no indexation. Units bought before that date are long-term after 24 months and taxed at 12.5% without indexation. Are hybrid funds taxed like equity or debt? It depends on equity share. Funds with 65% or more in Indian equity are taxed as equity. Funds with more than 65% in debt are taxed like new debt funds. Those in between are long-term after 24 months at 12.5%, and short-term at slab. Is tax deducted when I redeem a mutual fund? For resident individuals, no TDS is deducted on capital gains from mutual funds. You must work out and pay the tax yourself, through advance tax or when filing. NRIs do have TDS deducted on redemption. How are gold funds and international funds taxed? From FY 2025-26 they are no longer 'specified' funds. Listed gold or international ETFs are long-term after 12 months, and gold or international fund of funds after 24 months, both taxed at 12.5%. Shorter holdings are taxed at your slab. Does the INR 1.25 lakh exemption apply per fund? No. It's a single yearly allowance across all your listed equity and equity fund LTCG together, including direct shares. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [SEBI investor education](https://investor.sebi.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.