ELSS funds mature in 3 years. Once your investments mature
your gains will be added to your income as ‘income from other sources.’
You will not incur income tax on SIP returns if they are below ₹1 lakh for a financial year.
How are equity mutual fund returns taxed?
Taxes on mutual funds depend on the period for which you have held them.
According to the investment horizon, short-term capital gains (STCG) or long-term capital gains (LTCG) would apply.
STCG & LTCG on SIP Returns
In equity mutual funds, profits up to ₹1 lakh are exempted from taxes for short-term capital gains. Anything above this is taxed at 15%.
If your investment tenure has been 13 months or more, you'll be taxed for long-term capital appreciation. This is zero for profits up to ₹1 lakh and 10 per cent thereafter.
What are these tax rates?
Gains from an investment in a debt-based mutual fund for less than three years will have short-term capital appreciation.
These gains will be added to your income and taxed according to your income tax slab.
What does taxation look like for debt mutual funds?
Investing in your chosen mutual fund scheme is now quick, smart, and simple. The Fi app allows you to invest in mutual funds at your preferred frequency. Be it monthly SIPs or daily ones, choose what works for you.