LTCG is acronym for long-term capital gains. Returns on equity funds held beyond one year from the date of purchase will be treated as Long-Term Capital Gains (LTCG). The returns on such holdings will be taxed at 10% of the amount excessive of 1 lakh rupees. If the returns are less than 1 lakh rupees there will not be any tax applicable for equity schemes. For more details how mutual fund returns are subject to LTCG read this article about Tax on Mutual Fund Returns

Tax on Mutual Fund Returns

Many mutual fund investors have questions about how the income obtained from Mutual Funds are taxed. Well, the fact is the taxation varies for various mutual fund schemes. This article targets the budding investors and tries to explain the tax rates applicable on fund returns for equity and debt mutual fund schemes in simple terms.