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How to Save Tax on Equity Mutual Fund Long-Term Capital Gains
M
Moneycontrol•07-10-2026, 08:02
How to Save Tax on Equity Mutual Fund Long-Term Capital Gains
- •A taxpayer earned Rs 2.45 lakh in long-term capital gains from equity mutual funds, leaving Rs 1.20 lakh taxable after the Rs 1.25 lakh exemption.
- •Taxpayers cannot claim Section 80C deductions like PPF or tax rebates against long-term capital gains on listed shares and equity mutual funds.
- •Residents can adjust any shortfall in basic exemption limits against taxable long-term and short-term capital gains if other income is below the threshold.
- •Assuming the taxpayer is a resident and total income remains under the basic exemption limit, no tax is owed on the capital gains.
Key Questions Answered
No, deductions under Section 80C for PPF contributions cannot be claimed against long-term capital gains on listed shares and equity mutual funds.
You cannot claim a tax rebate against long-term capital gains on listed shares and equity mutual funds.
Resident taxpayers whose income other than capital gains falls below the basic exemption limit can adjust that shortfall against taxable long-term and short-term capital gains from listed shares and equity schemes, and then pay tax on the balance.
