Different types of Mutual Funds attract different types of taxes. Here is all you would want to know about taxes applicable on Mutual Funds in
| Taxation | Equity Funds | Liquid funds/Money Market Funds | Debt fund/liquid plus Funds |
| Short Term Capital Gain Tax | *16.995% | As per Income Tax Slab | As per Income Tax Slab |
| Long Term Capital Gain Tax | Nil | Less of 10% without indexation or 20% with indexation | Less of 10% without indexation or 20% with indexation |
| Dividend Distribution Tax | Nil | **28.325% | **14.163% |
- 80C benefits through ELSS: Under the current tax laws, you can get an annual income tax benefit of up to Rs. 1Lakh if you invest in Equity Linked Savings Schemes, ELSS. However, the minimum term for these schemes is 3 years and you cannot withdraw your money before that time
*There would be an additional surcharge of 10% of Short Term Capital Gain Tax if the individuals income is more than 10 lacs per annum. Further, the education cess of 3% shall be levied on all investors.
*Short Term Capital Gain Tax indicated above is inclusive of surcharge and education cess
**Dividend Distribution Taxes indicated above are inclusive of additional surcharge and cess.
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