Is income from tax saver mutual fund itself taxable income?

1) Short term capital gains are taxable. But for tax saver mutual fund there will be lock-in period of 3 years. So no question of short term gains.

2) Long Term Capital Gains:
Equity shares, mutual fund unit, zero coupon bond held for more than 12 months

Equity shares purchased after 1st March 2003 and equity mutual funds bought after 1st October 2004 are exempt from long-term capital gains tax. The intention is to encourage long-term savings in equities.

Another exception is in case of non-equity mutual funds, you will have an option to forego the benefit of indexation and pay long-term capital gain tax at 10% instead of 20%. Which option is more beneficial can be determined on a case-to-case basis.

If the tax saver mutual fund is equity related mutual fund, then no tax after 12 monhts of holding. If not, then it attracts 10% or 20% as described in above para.

Tax saver mutual fund will have a lockin period of 36 months. So it is long term cap. gains only. Find out it is equity based or non equity based fund.
Short term and long term asset

Long term C.Gains:
Equity shares, mutual fund unit,zero coupon bond Held for 12 months or less Held for more than 12 months.

No it is not taxable.

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