BS Primer: How to withdraw from mutual funds without getting taxed

The tax rates on capital gains are different for equity funds and debt funds

What is Capital Gain tax on Mutual Funds?

You earn capital gains when you sell units of your mutual fund. Capital gains is the difference between the selling price of mutual fund units and the cost of acquisition. This sale may attract tax at your end. The rate of taxation depends on the type of fund and the holding period. The holding period is simply the time period for which you remained invested in the fund.

Equity funds are taxed differently from debt funds. In case of equity funds, a period of less than one-year is treated as short-term and