How is capital gains tax on mutual funds calculated in India?

For equity funds, gains on units held for more than 12 months are long-term and taxed at 12.5% above ₹1.25 lakh a year; gains on units held for 12 months or less are taxed at 20%. Gains on debt funds bought on or after 1 April 2023 are added to your income and taxed at your slab rate.

Which units are sold first when I redeem a mutual fund?

The oldest units first (first in, first out). So a redemption can include both long-term and short-term units, which is why the tax is worked out lot by lot.

What is Schedule 112A?

The part of ITR-2 and ITR-3 where you report long-term gains on equity shares and equity mutual funds. The ITR utility lets you upload a CSV instead of typing each row; this tool creates that CSV from your CAS.

What is grandfathering for units bought before 1 February 2018?

For equity units bought on or before 31 January 2018, the cost is taken as the higher of what you paid and their value on 31 January 2018 (but not more than the sale price), so gains made before that date aren't taxed.

Can I carry forward capital losses?

Yes, for eight years, if you file your return by the due date. Short-term losses can be set off against any capital gains; long-term losses only against long-term gains.

Capital gains on your mutual funds.

Upload your CAS from CAMS or KFintech. See your short- and long-term gains for each year, the tax on them, and download a Schedule 112A file for your ITR. Trade shares or F&O? Add your broker's totals.

Read on our server and discarded. Never sent to an AI service, never stored.

Don't have one? How to get your CAS free in 2 minutes. Choose "Detailed" and a period starting before your first investment.

Shares and trading: from your broker's tax report

Shares in a demat account aren't in a CAMS or KFintech CAS. Download the tax P&L report from your broker (Zerodha Console, Groww, Upstox, Angel One and others all have one) and copy its totals here. Enter losses with a minus sign.

Short-term capital gain (₹)Shares and equity funds held 12 months or less.

Long-term capital gain (₹)Held more than 12 months. Use the broker's figure after grandfathering.

Intraday profit or loss (₹)Speculative income.

F&O profit or loss (₹)Net of brokerage and charges.

F&O turnover (₹, optional)Most brokers' reports show it. Used to check for a tax audit.

Add mutual fund gains from this tool or another statement

Debt / other long-term gain (₹)Taxed at 12.5%.

Gains taxed at slab rate (₹)Debt funds bought from April 2023, and short-term debt gains.

Figures aren't saved or put in the page address. Want your broker's file read automatically? We're adding that broker by broker.

Covers mutual funds only; shares held in a demat account aren't in a CAMS or KFintech CAS. Tax is estimated for FY 2025-26 onwards. An estimate, not tax advice.

Frequently asked questions

How is capital gains tax on mutual funds calculated in India?: For equity funds, gains on units held for more than 12 months are long-term and taxed at 12.5% above ₹1.25 lakh a year; gains on units held for 12 months or less are taxed at 20%. Gains on debt funds bought on or after 1 April 2023 are added to your income and taxed at your slab rate.
Which units are sold first when I redeem a mutual fund?: The oldest units first (first in, first out). So a redemption can include both long-term and short-term units, which is why the tax is worked out lot by lot.
What is Schedule 112A?: The part of ITR-2 and ITR-3 where you report long-term gains on equity shares and equity mutual funds. The ITR utility lets you upload a CSV instead of typing each row; this tool creates that CSV from your CAS.
What is grandfathering for units bought before 1 February 2018?: For equity units bought on or before 31 January 2018, the cost is taken as the higher of what you paid and their value on 31 January 2018 (but not more than the sale price), so gains made before that date aren't taxed.
Can I carry forward capital losses?: Yes, for eight years, if you file your return by the due date. Short-term losses can be set off against any capital gains; long-term losses only against long-term gains.