How to Save Tax on Mutual Funds Profit: A Complete Guide for 2026
How to Save Tax on Mutual Funds Profit: A Complete Guide for 2026 Introduction Investing in mutual funds is one of the most popular ways to build wealth in India. However, many investors overlook a critical aspect that can significantly impact their returns—taxation on mutual fund profits. Understanding how to legally minimize your tax liability can add substantial value to your investment portfolio. In this comprehensive guide, we'll explore practical, actionable strategies to help you save tax on your mutual fund gains while staying compliant with Indian tax laws. Whether you're a seasoned investor or just starting out, this guide will empower you to make informed decisions that protect and grow your wealth. Understanding Taxation on Mutual Funds Before diving into tax-saving strategies, it's essential to understand how mutual fund profits are taxed in India. Types of Capital Gains Mutual fund returns are taxed as capital gains, which are categorized into two types: Sho...