MF Tax Calculator — FY 2025-26

Tools · Capital Gains

🧾 MF Tax Calculator FY 2025-26 · AY 2026-27

Multi-fund portfolio tax calculator — STCG, LTCG, carry-forward losses, tax loss harvesting, SIP FIFO, and smart saving tips. Budget 2024 & 2025 compliant. All calculations are done in your browser — nothing is sent to any server. 📖 Read the complete tax guide →

🧑 Your Tax Profile

Income Tax Slab

Equity LTCG already used from stocks/ETFs (₹)

Carry-Forward STCL (₹)

Carry-Forward LTCL (₹)

📂 Your Funds

Total Tax Payable (incl. 4% cess)

₹0

Post-Tax Value: — | Add funds to calculate

Total Invested

₹0

Total Gains

₹0

Effective Tax %

0.0%

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Add funds to see your tax summary

Enter investment details in the left panel. Results update instantly.

📖 How to Use — Portfolio & Tax Tab

1️⃣

Set Your Tax Slab

Select your income tax bracket — 0%, 5%, 10%, 15%, 20%, or 30%. This affects tax on debt fund gains and IDCW income. Equity STCG is always 20% and LTCG is always 12.5%, regardless of your slab.

2️⃣

Add Each Fund You Redeemed

Click + Add Fund for every mutual fund redemption this financial year. Enter the fund type, purchase date, sale date, and amounts. The calculator classifies it as STCG or LTCG automatically based on holding period.

3️⃣

Enter Carry-Forward Losses

If you filed ITR-2 in previous years and had capital losses, enter them here. STCL from prior years offsets STCG first (saving 20% per ₹), then LTCG. LTCL can only offset LTCG. Carry-forward is valid for up to 8 assessment years.

4️⃣

Read the Live Summary

The right panel updates instantly as you type. It shows the full set-off applied (losses reducing gains), the ₹1.25L equity LTCG exemption, a per-line tax breakdown, and smart tips on how to reduce your tax further.

Frequently Asked Questions

What is the ₹1.25 lakh LTCG exemption?

The first ₹1.25 lakh of long-term capital gains from equity mutual funds (and direct stocks) every financial year is completely tax-free. This exemption is shared across all equity redemptions. If you've already booked ₹80,000 in LTCG from stocks, only ₹45,000 of the exemption remains for your MF redemptions.

Why is my debt fund taxed at slab rate?

Budget 2023 changed the rules for debt funds. Any units purchased after 1 April 2023 are taxed at your income slab rate regardless of how long you hold them. This is called Section 50AA. Units purchased before April 2023 may still get long-term treatment if held for 3+ years.

Can LTCL offset STCG?

No. Long-Term Capital Losses (LTCL) can only be offset against Long-Term Capital Gains (LTCG). They cannot reduce Short-Term Capital Gains (STCG) under any circumstances. STCL, however, can offset both STCG and LTCG.

Is 4% Health & Education cess always applicable?

Yes. A 4% cess is added on top of all income tax (including capital gains tax) for every taxpayer in India. It is not included in the base rates (20%, 12.5%, slab) — it is added at the end of the total tax computation.

FY 2025-26 Tax Rate Reference (Budget 2024 & 2025)

Fund Type	Short-Term Rate	Threshold	Long-Term Rate	Exemption
Equity / ELSS / Arbitrage	20% + cess	12 months	12.5% + cess	₹1.25L/year
Debt Fund (post Apr 2023)	Slab rate + cess	—	Slab rate + cess	None
Debt Fund (pre Apr 2023 units)	Slab rate + cess	36 months	12.5% + cess	None
Gold ETF (listed) / Intl ETF	Slab rate + cess	12 months	12.5% + cess	None
Gold FoF / Intl FoF (unlisted)	Slab rate + cess	24 months	12.5% + cess	None
Conservative Hybrid	Slab rate + cess	24 months	12.5% + cess	None
Aggressive Hybrid / BAF	20% + cess	12 months	12.5% + cess	₹1.25L/year
IDCW (Dividend) — any fund	Always at your slab rate + cess (TDS 10% if >₹5K/year)			None

Step 1 — Realized Gains This Year

Realized STCG — Equity (₹) @ 20%

Realized LTCG — Equity (₹) @ 12.5% above ₹1.25L

Realized STCG — Debt/Other (₹) @ Slab

Realized LTCG — Non-Equity (₹) @ 12.5%

Your Tax Slab (%)

Step 2 — Loss Positions to Harvest

🌾 Harvesting Result

Tax You Save by Harvesting

₹0

Add realized gains and loss positions above.

Without harvesting: ₹0 After harvesting: ₹0

0% reduction

Realized Gains (for priority calc)

Total STCG this FY (₹)

Total LTCG this FY (₹)

Your Tax Slab (%)

Loss Positions

📊 Optimal Harvest Order

ⓘ Why STCL is prioritized: STCL saves 20¢ per ₹ when used against STCG, vs only 12.5¢ against LTCG. Always exhaust STCG first with STCL for maximum tax savings.

Total Saved by Optimal Harvesting

₹0

All Portfolio Positions (Gains & Losses)

Enter all open positions — both gains and losses — to get the optimal March 31 action plan.

Your Tax Slab (%)

📅 Year-End Action Plan

📅31 March 2026 — Last day to book gains or losses in FY 2025-26

Tax Saved by Taking Action Before March 31

₹0

Add your positions to see the action plan.

📖 How Tax Loss Harvesting Works

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What is Tax Loss Harvesting?

Tax loss harvesting means deliberately selling an investment that is currently at a loss to "realise" that loss on paper. The booked loss can then be offset against your capital gains — reducing your taxable income and saving tax. You can immediately repurchase the same fund. India has no wash-sale rule.

📊

STCL vs LTCL Priority

Short-Term Capital Loss (STCL) is more valuable — it can offset STCG (saving 20%) and also LTCG (saving 12.5%). Long-Term Capital Loss (LTCL) can only offset LTCG. Always harvest STCL positions first and use them against STCG before applying them to LTCG. The Priority Order sub-tab automates this ranking for you.

⚠️

Watch Out for Exit Loads

Many funds charge an exit load (typically 1% for equity funds if redeemed within 1 year). If your tax saving is smaller than the exit load, harvesting is not worth it. The calculator flags this automatically for every position you enter — look for the 🚫 "Not worth harvesting" alerts.

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Year-End Planner (March 31)

The Year-End Planner tab helps you decide which positions to sell before 31 March. Enter all your open positions — both gains and losses. The calculator recommends the optimal set of sells to minimise your FY 2025-26 tax bill. Gains booked after 31 March fall in FY 2026-27.

Harvesting Examples

Example: STCL offsetting STCG

You realised ₹2,00,000 in equity STCG (tax @ 20% = ₹40,000). You harvest a ₹1,50,000 STCL from a mid-cap fund. Net STCG = ₹50,000. Tax = ₹10,000. Saving = ₹30,000 (plus 4% cess = ₹31,200 total saving).

Example: LTCL against LTCG

You have ₹3,00,000 equity LTCG (after ₹1.25L exemption, taxable = ₹1,75,000, tax = ₹21,875). You harvest ₹1,75,000 in LTCL. Tax = ₹0. Saving = ₹21,875 (+ cess).

Can I buy the same fund back immediately?

Yes. India does not have a "wash-sale" rule like the US. You can sell a fund at a loss to book the loss, and immediately repurchase the same fund the next day. The new purchase will have a fresh cost basis at the current NAV.

What if I don't use all my losses this year?

Unused capital losses carry forward for up to 8 assessment years from the year they were first incurred. You must file your ITR on time (by 31 July) every year to preserve this carry-forward right. Missed filings forfeit the carry-forward.

SIP Fund Details

Fund Name (optional)

Fund Type

SIP Installments

Date	Amount (₹)	Buy NAV	Units

Redemption Details

Redemption Date

Sell NAV (₹)

Redemption Amount (₹) — or leave 0 for full

📋 FIFO Redemption Breakdown

📅

Enter SIP installments and redemption details to see the FIFO breakdown.

📖 How SIP Taxation & FIFO Works

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What is FIFO?

When you redeem units from a SIP, the Income Tax Act mandates First-In-First-Out (FIFO). This means the units you bought earliest are treated as sold first. For a SIP running for 2+ years, your oldest installments are long-term, while recent ones are short-term — and they're redeemed in that order.

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How to Use This Tab

Enter each SIP installment (date, amount, buy NAV). Units are calculated automatically. Then enter the redemption date and sell NAV. Click Calculate SIP Tax → to see the FIFO breakdown — which installments are long-term, which are short-term, and the tax on each batch.

⏳

Timing Matters for SIPs

In a partial redemption, FIFO means your oldest (most likely long-term) units are sold first. But in a full redemption, all units including recent short-term ones are sold. The calculator shows you exactly how many installments are short-term so you can decide whether to wait before redeeming.

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What to Submit in ITR

Your CAMS or KFintech capital gains statement already applies FIFO and gives you aggregated STCG and LTCG figures. Use those figures directly in Schedule CG of ITR-2. This calculator helps you understand the breakdown before you decide to redeem, so you can time it optimally.

SIP Taxation Examples

SIP started Jan 2024, partial redemption in Mar 2025

Jan–Feb 2024 installments (14+ months) are LTCG. Mar 2024 onwards are still short-term (under 12 months). FIFO applies, so Jan and Feb are redeemed first (LTCG). If redemption is small enough, you may avoid all STCG entirely.

Can I choose which units to redeem?

No. For partial redemptions, FIFO is mandatory under Indian tax law. You cannot select which installments to redeem. The tax authority assumes the oldest units are always sold first, regardless of what the fund house system shows.

What about ELSS SIP redemptions?

ELSS has a 3-year lock-in per installment. Each SIP installment is locked for 3 years from its own purchase date. So if you started ELSS SIP in Jan 2022, only installments before Jan 2022 are unlocked by Jan 2025. FIFO still applies to unlocked units.

Growth vs IDCW — Inputs

Fund Type

Your Tax Slab (%)

Investment (₹)

Expected Total Gain (₹)

Holding Period (months)

📊 Growth vs IDCW Comparison

Fill inputs and click Compare →

Fund Switch Tax Calculator

Source Fund Type

Target Fund Name

Your Tax Slab (%)

Purchase Date

Switch Date

Purchase Cost (₹)

Current Value (₹)

🔀 Switch Tax Impact

Fill inputs and click Calculate →

Arbitrage vs Liquid — Inputs

Amount to Park (₹)

Duration (months)

Expected Annual Return (%)

Your Tax Slab (%)

⚖️ Arbitrage vs Liquid Comparison

Fill inputs and click Compare →

📖 How the Comparison Tools Work

📈

Growth vs IDCW

IDCW (formerly dividend) is taxed at your full income slab rate the moment you receive it. Growth option defers all tax until redemption, when it may qualify as LTCG at 12.5%. For investors in the 20%+ bracket, Growth is almost always better. IDCW only makes sense if you're in the 0–5% slab and need regular income.

🔀

Fund Switch Tax

Switching from Fund A to Fund B is legally treated as a full redemption of A followed by a fresh purchase of B. This triggers full capital gains tax on A — even if you switch within the same AMC or between Regular and Direct plans of the same scheme. Always calculate the tax cost before switching.

⚖️

Arbitrage vs Liquid Fund

Arbitrage funds are classified as equity (since they maintain ≥65% in equity + equity derivatives). This means short-term gains are taxed at 20% (like equity STCG), not at your slab rate like liquid funds. For a 30% slab investor, this saves 10 percentage points — significant for large short-term parking.

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When to Use These Tools

Use Growth vs IDCW when choosing a plan for a new investment. Use Fund Switch Tax before switching to avoid surprises. Use Arbitrage vs Liquid when you have surplus cash to park for 3–12 months and want to minimise tax on the returns.

Key Concepts Explained

Why is Growth option better than IDCW for most investors?

With IDCW, you pay tax at your slab rate (up to 31.2% with cess) every time a dividend is declared. With Growth, gains compound untaxed until you redeem. At redemption, long-term equity gains are taxed at just 13% (12.5% + cess) above ₹1.25L. The compounding benefit of deferred tax can be substantial over 5–10 years.

Does switching between Regular and Direct reset the holding period?

Yes. Switching from Regular to Direct plan of the same fund is treated as a redemption of the Regular plan and a new purchase of the Direct plan. The holding period resets to zero for the Direct plan units. This can unexpectedly convert LTCG to STCG. Plan switches carefully.

📋 ITR Form Selector

📝 ITR-2 is required if you have LTCG > ₹1.25 lakh, any short-term capital gains, losses to carry forward, or foreign income. Most mutual fund investors with redemptions in FY 2025-26 should file ITR-2.

⚠️ ITR-1 (Sahaj) can only be used if your total income is below ₹50 lakh, you have no capital losses, and your long-term equity gains are below ₹1.25 lakh (fully exempt).

Quick Selector — Which ITR do you need?

I have STCG (short-term gains) this year I have equity LTCG above ₹1.25 lakh I have capital losses to carry forward I redeemed debt funds (post Apr 2023)

📋 Select the checkboxes above to get your ITR form recommendation.

📅 Key Deadlines — FY 2025-26

📅 31 March 2026 — Last day to book gains/losses in FY 2025-26. Any transaction after this counts in FY 2026-27.

📅 31 July 2026 — Last date to file ITR-2 without penalty. You MUST file by this date to carry forward any capital losses.

📅 31 December 2026 — Belated/revised return deadline (with late fee of ₹5,000).

📂 Documents to Collect

📄 Capital Gains Statement from CAMS — myCAMS.com → Statements → Capital Gain

📄 Capital Gains Statement from KFintech — kfintech.com → Investor Services → Capital Gains

📄 Annual Information Statement (AIS) — IT Portal (incometax.gov.in) → AIS/26AS

📄 Form 26AS — Check TDS credits for IDCW received (10% TDS if IDCW > ₹5,000/year per AMC)

📄 Form 16 — From employer, if salaried

🗂 ITR Schedule CG — What to Fill

Section 111A — Equity STCG @ 20%Enter your total equity short-term gains

Section 112A — Equity LTCG @ 12.5%Gross LTCG; system auto-applies ₹1.25L exemption

Other STCG (Debt/Gold short-term)Taxed at slab rate — enters Schedule OS or CG-Other

Other LTCG (Gold, Intl Funds)Section 112 — taxed at 12.5% (no exemption)

Schedule BFLACarry-forward losses set-off from prior years

Schedule CFLLosses this year to carry forward to next year

IDCW IncomeEnters Schedule OS as "Other Income" — taxed at slab

💡 Tax-Saving Strategies Recap

🌾Tax Loss Harvesting: Sell loss-making funds to book the loss, use it against gains, then buy back immediately. No wash-sale rule in India.

📅Wait for Long-Term: Holding equity funds beyond 12 months cuts the tax rate from 20% (STCG) to 12.5% (LTCG). Waiting can save thousands.

🎯Use the ₹1.25L Exemption: Book up to ₹1.25 lakh in equity LTCG every financial year completely tax-free. Harvest gains systematically to maximise this.

📈Growth over IDCW: For tax slabs of 20%+ , Growth option is almost always better — IDCW is taxed at your full slab rate immediately.

⚖️Arbitrage for Short-Term Parking: Arbitrage funds are taxed as equity (20% STCG) instead of debt (slab rate). Significant savings for high-bracket investors.

📖 How to File Your ITR for Mutual Fund Gains

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Which ITR Form?

ITR-2 is needed if you have any STCG, LTCG above ₹1.25L, capital losses to carry forward, or income from more than one source. Most mutual fund investors with redemptions will need ITR-2. ITR-1 (Sahaj) is only for salaried individuals with income below ₹50L and fully exempt LTCG.

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Get Your Capital Gains Statement

Download your Capital Gains Statement from CAMS (myCAMS.com) and KFintech (kfintech.com) — both cover different AMCs. These statements already apply FIFO and give you pre-calculated STCG and LTCG figures. Cross-check these with your Annual Information Statement (AIS) on the IT Portal.

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File by 31 July 2026

The ITR-2 deadline for FY 2025-26 is 31 July 2026. If you miss this, you can file a belated return by 31 December 2026 with a ₹5,000 late fee. Critically: you can only carry forward capital losses if you file by 31 July. A belated return loses this right.

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Advance Tax Obligation

If your total tax liability (including capital gains tax) exceeds ₹10,000 in a year, you must pay advance tax in four instalments (June, September, December, March). Missing advance tax triggers interest under Section 234B and 234C. If you make a large redemption mid-year, estimate your tax and pay advance accordingly.

Schedule CG — Step by Step

Step 1: Collect all capital gains statements

Download from CAMS, KFintech, and any other RTAs. Check AIS on the IT portal for any gains the department has pre-filled. Ensure all statements match for the same financial year (1 April 2025 to 31 March 2026).

Step 2: Fill Schedule CG in ITR-2

Enter Equity STCG under Section 111A. Enter Equity LTCG (gross, before exemption) under Section 112A — the system auto-applies the ₹1.25L exemption. Enter Debt/Other STCG and LTCG in the "other" rows. Enter IDCW in Schedule OS.

Step 3: Apply set-off in Schedule CYLA & BFLA

Schedule CYLA handles current-year loss set-off. Schedule BFLA handles brought-forward losses from prior years. The IT portal auto-populates BFLA if you filed previous returns correctly. Verify the amounts match your records.

Step 4: Schedule CFL for carry-forward

Any losses that couldn't be set off this year go into Schedule CFL. The portal carries this forward automatically to next year's return — provided you file on time. This is why the 31 July deadline is critical for loss carry-forwards.