Question: what is long term capital gain on mutual funds?
Answer: For equity oriented schemes, if the investment is held for 12 months or less, it is termed as short term capital gain and taxed at 15%. If the investment is held for more than 12 months, it is termed as long term capital gain (LTCG) and taxed at 20%, in case the total LTCG for the year is above Rs 1 lakh.