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Formula sheet/NISM Series V-A: Mutual Fund Distributors/Taxation
[ TAXATION ]

Capital Gains Classification & Rates (Post-July 23, 2024)

Equity-Oriented Funds(≥65%Domestic Equity):\text{Equity-Oriented Funds} (\ge 65\% \text{Domestic Equity}):
•STCG(Holding≤12months):20%flat u/s111A• STCG (Holding \le 12 months): 20\% \text{flat u}/s 111A
•LTCG(Holding>12months):12.5%on gains exceeding Rs1.25Lakh threshold u/s112A• LTCG (Holding > 12 months): 12.5\% \text{on gains exceeding Rs} 1.25 \text{Lakh threshold u}/s 112A
Specified Mutual Funds(>65%Debt/Money Market,bought after01−04−2023):\text{Specified Mutual Funds} (>65\% Debt / \text{Money Market}, \text{bought after} 01-04-2023):
•All gains treated as Short-Term Capital Gains,taxed at individual Marginal Slab Rates u/s50AA.• \text{All gains treated as Short-Term Capital Gains}, \text{taxed at individual Marginal Slab Rates u}/s 50AA.
Hybrid Funds(35%to65%Equity)&Gold/Silver ETFs/Fund of Funds:\text{Hybrid Funds} (35\% to 65\% Equity) \& Gold/\text{Silver ETFs} / \text{Fund of Funds}:
•STCG(≤24m or≤12m for listed ETFs):Marginal Slab Rates∣LTCG(>24m or>12m for listed ETFs):12.5%without indexation.• STCG (\le 24\text{m or} \le 12\text{m for listed ETFs}): \text{Marginal Slab Rates}\quad\Big|\quad LTCG (> 24\text{m or} > 12\text{m for listed ETFs}): 12.5\% \text{without indexation}.
Variables

Section 10(23D) exempts all income earned by mutual fund trusts; tax is levied only in the hands of unitholders.

Exam note

STT @ 0.001% applies only to redemption/sale of equity-oriented mutual funds; no STT on debt funds or purchases.

Worked examples
Equity MF Capital Gains Tax with Rs 1.25 Lakh Exemption

A resident individual sells 10,000 units of an equity-oriented mutual fund on 15th August 2024 at Rs 55.00 per unit (STT paid). The units were purchased on 1st June 2023 at Rs 35.00 per unit. The investor had no other capital gains during FY2024-25. Calculate the Long-Term Capital Gain and the tax payable under Section 112A.

Bonus Stripping Loss Disallowance under Section 94(8)

An investor buys 1,000 units of an equity fund at Rs 60.00 per unit on 1st July 2024. The scheme announces a 1:1 bonus with record date 1st September 2024 (1,000 bonus units allotted free). Post-bonus NAV drops to Rs 30.00. The investor sells the original 1,000 units at Rs 30.00 on 15th December 2024 while holding the bonus units. Calculate the allowable capital loss and the adjusted cost of the bonus units.