Income Tax Calculator
This Income Tax Saver is a precision tax optimization tool designed to compare the Old vs New tax regimes for FY 2025-26. It accurately calculates your total tax liability, factoring in eligible deductions and exemptions, to determine the most tax-efficient structure for your personal income.
Income Details
Tax Comparison
Understanding Mutual Fund Taxation
Taxes are the largest expense most investors face over their lifetime. Understanding the distinction between Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) is vital to maximizing your net, take-home returns.
Equity vs. Debt Taxation
In many jurisdictions (such as India), equity-oriented mutual funds enjoy highly favorable tax treatment compared to debt funds or fixed deposits to encourage long-term capital formation in the stock market.
Frequently Asked Questions
What is the current LTCG tax rate for equity?
As per the latest Indian tax laws (Union Budget 2024), Long Term Capital Gains (LTCG) on equity mutual funds are taxed at 12.5% for gains exceeding ₹1.25 Lakh in a financial year.
What happens if I sell an equity fund before 1 year?
If you sell an equity fund before completing 12 months, the profits are classified as Short Term Capital Gains (STCG) and are currently taxed at a flat rate of 20%.