Equity vs debt fund taxation

Tax depends on the fund type and holding period:

• Equity funds: held ≤12 months → short-term gains; held >12 months → long-term, with an annual tax-free threshold. Rates are set by current law.
• Debt funds: gains are added to your income and taxed at your slab rate (treatment changed in recent budgets).

Tax rules change often and depend on your situation - verify current rates and consult a tax professional.