Sheet 05 — Compliance Schedule
How each structure is taxed. FY 2026–27.
Post-tax return is the only return that reaches you. Union Budget 2026 left the capital-gains framework unchanged — the schedule below reflects the law as it stands. Always confirm with your Chartered Accountant before acting.
| Structure | LT threshold | Short-term | Long-term | Income / other | Note |
|---|---|---|---|---|---|
| Equity Mutual Funds / SIF (equity-oriented) | 12 months | 20% | 12.5% above ₹1.25 L/yr | Dividends at slab | Gains only on your redemption — internal churn untaxed |
| Debt Mutual Funds (bought after Apr 2023) | — | Slab rate (all gains) | Slab rate (all gains) | — | No LTCG benefit regardless of holding |
| FD+ / Corporate FDs & Bonds | — | Slab | Slab (no LTCG benefit) | Interest at slab, TDS applies | Slab rate throughout; no long-term concession |
| Debt PMS | — | Slab | Slab (no LTCG benefit) | Coupons at slab in your hands | Slab rate throughout; no long-term concession |
| REITs / InvITs (units) | 12 months | 20% | 12.5% | Distributions component-wise: interest/rent at slab, some parts exempt | Trust reports the split each year |
| Equity PMS | 12 months (per stock) | 20% | 12.5% above ₹1.25 L/yr | Dividends at slab | Taxed as direct equity; manager churn = taxable events yearly |
| Long-Only Equity AIF / Market Neutral — Cat III | — | — | — | — | Taxed at the fund level at maximum marginal rate; you receive post-tax NAV |
| Private Credit / PE — Cat II AIF | Per underlying asset | Per underlying | Per underlying | Interest at slab; fund deducts TDS | Pass-through — income taxed in your hands, not the fund |
| GIFT City / Global funds (resident via LRS) | 24 months (unlisted units) | Slab | 12.5% | Foreign dividends at slab | Schedule FA reporting mandatory; TCS on LRS above ₹10 L/yr (adjustable) |
| Pre-IPO / Unlisted shares | 24 months | Slab | 12.5% | Dividends at slab | Buyback proceeds now taxed as capital gains (Budget 2026) |
| Angel / VC — Cat I AIF | Per underlying (unlisted: 24 m) | Per underlying | 12.5% (unlisted) | Pass-through; TDS on distributions | Losses at fund level pass through subject to conditions |
Recent changes worth knowing —
- Budget 2026 (Feb 2026): LTCG rates unchanged at 12.5%. Buyback proceeds are now taxed as capital gains for all shareholder categories. STT on commodity futures raised to 0.05%.
- Since July 2024: uniform 12.5% LTCG across asset classes (no indexation); listed assets turn long-term at 12 months, unlisted at 24 months; equity STCG at 20%.
- Debt mutual funds purchased after 1 Apr 2023 are taxed at slab rate irrespective of holding period.
- FDs, corporate bonds/deposits and Debt PMS in this framework are treated at slab rate throughout — no long-term capital-gains concession is assumed on the debt sleeve.
- Surcharge and 4% cess apply over and above the rates shown. Surcharge on LTCG/equity STCG is capped at 15%.
This schedule is a simplified summary. Actual liability depends on residency, treaty position, income mix, and the specific structure of each fund. The tax impact of any switch — including exit loads and crystallised gains on the way out — is disclosed and discussed before any transaction. Please verify with your Chartered Accountant.