Mutual Fund Redemption Tax Calculator

Mutual fund investments provide income through two routes: dividend payouts and capital appreciation on redemption. Dividend income was recently made taxable (previously dividend distribution tax was deducted at source), adding to overall tax burden. Capital gains from mutual funds are classified as long-term (held 1+ years, 20% tax with indexation benefit) or short-term (under 1 year, 15% tax for equity funds, slab rate for debt). This calculator helps investors understand net returns after tax, essential for comparing different fund categories and investment horizons. Many investors are surprised by tax liability on mutual fund profits, expecting better returns than actual net amount received. Understanding tax-adjusted returns influences fund selection, holding period decisions, and strategic redemptions during financial year.