{"id":1190,"date":"2024-04-22T10:46:32","date_gmt":"2024-04-22T10:46:32","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1190"},"modified":"2026-03-02T19:27:41","modified_gmt":"2026-03-02T19:27:41","slug":"how-are-mutual-funds-and-equity-shares-taxed","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/how-are-mutual-funds-and-equity-shares-taxed\/","title":{"rendered":"How are mutual funds and equity shares taxed?"},"content":{"rendered":"\n<p>The taxation in equities is simple. If you hold any equity instrument (stock or mutual fund), for more than one year, it counts as Long Term Capital Gain. Anything lesser is Short Term Capital Gain.<\/p>\n\n\n\n<p>LTCG is taxed at 10% whereas STCG is at 15%. The first one lakh is exempt. This means if your LTCG is Rs 200,000 then the tax will be 10% of (200,000 minus 100,000) which is Rs 10,000.<\/p>\n\n\n\n<p>Dividends on equities are also taxed in the hands of the investor. Implications:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A smart direct equity investor will not look at dividend yield when making long term growth oriented investments. Dont bother about the tax. Period.<\/li><li>A smart mutual fund investor would accumulate their wealth as much possible without incurring taxes on dividends. Avoid dividend schemes.<\/li><\/ul>\n\n\n\n<p>For a great tax optimised portfolio that invests in the best direct equities, you may read more at\u00a0<a href=\"https:\/\/maxiomwealth.com\/\">Maxiomwealth<\/a><\/p>\n\n\n<!-- mw-cta-block -->\n\n<div class=\"mw-cta-block\" style=\"background:#EEF3FC;border-left:5px solid #1C52A0;padding:22px 26px 20px;margin:36px 0 24px;border-radius:0 10px 10px 0;\">\n  <p style=\"margin:0 0 4px;font-size:11px;font-weight:700;color:#276FC4;letter-spacing:1px;text-transform:uppercase;\">Maxiom Wealth \u2014 Free Tool<\/p>\n  <h3 style=\"margin:0 0 10px;font-size:19px;font-weight:700;color:#113E81;line-height:1.3;\">How Much Tax Will You Save \u2014 or Pay \u2014 This Year?<\/h3>\n  <p style=\"margin:0 0 18px;color:#444;font-size:15px;line-height:1.65;\">Capital gains tax on equity, HRA exemptions, 80C deductions \u2014 it all adds up. Use our tax calculators to plan smarter before the financial year ends.<\/p>\n  <a href=\"https:\/\/maxiomwealth.com\/resources\/calculators\/capital-gains-tax\" style=\"display:inline-block;background:#1C52A0;color:#fff!important;padding:11px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin:0 10px 8px 0;\">Capital Gains Tax Calculator \u2192<\/a>\n  <a href=\"https:\/\/maxiomwealth.com\/meeting\" style=\"display:inline-block;border:2px solid #1C52A0;color:#1C52A0!important;padding:9px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin-bottom:8px;\">Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>The taxation in equities is simple. If you hold any equity instrument (stock or mutual fund), for more than one year, it counts as Long Term Capital Gain. Anything lesser is Short Term Capital Gain. LTCG is taxed at 10% whereas STCG is at 15%. The first one lakh is exempt. This means if your&hellip;&nbsp;<a href=\"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/how-are-mutual-funds-and-equity-shares-taxed\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">How are mutual funds and equity shares taxed?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,99],"tags":[],"class_list":["post-1190","post","type-post","status-publish","format-standard","hentry","category-investments","category-taxation"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1190"}],"version-history":[{"count":2,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1190\/revisions"}],"predecessor-version":[{"id":3629,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1190\/revisions\/3629"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}