LTGC on equity Fund of Funds: Entire Income at existing slab?

[falldown]

I was reading an equity-based FoF here at ValueResearch

https://www.valueresearchonline.com/funds/36693/icici-prudential-bharat-22-fof-direct-plan/#overview

It is mentioned:

Capital Gains Taxation: If investment is made on or after 1 April 2023: Entire amount of gain is added to the investors' income and taxed according to the applicable slab rate.

Is that the case? I fall under 30% slab, so I have to pay 30% of profits even after 1 year of holding? Strange. As per my understanding, for equity funds, taxation is flat 15% of profits if sold within 1 year, and 10% if more than 1 year, please correct me if I am wrong.

 

[resjudicata]

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This post was mass deleted and anonymized with Redact

 

[falldown]

@resjudicata As per the info at Kuvera: https://kuvera.in/mutual-funds/fund/IC5005-GR

"ICICI Prudential Bharat 22 FoF Growth Direct Plan is an equity mutual fund and the capital gains made from it are taxed at the rate of 10% for long term gains (if you hold your units for 1 year or more) and at the rate of 15% for short terms gains (if you hold your units for less than a year)."

That would mean either Kuvera or ValueResearch is wrong.

 

[soxaholic55]

@falldown He already told you “certain criteria are not met”

You are taking about a specific fund. Better find what those criterial are and then see if your fund fulfills them or not.

Both can be true.

 

[blaise]

@soxaholic55 The criteria to be considered equity for FOF is the fund should invest at least 90% in fund/s which also invest at least 90% in Indian equity.

For generic funds which invest directly in equity, the criteria is 65%

 

[soxaholic55]

@blaise Sure, my comment was more an exercise about Venn diagrams.

Lazy people who invest in these funds can do a Google search to find out what is what OR get audited and fined.

 

[brucepjr]

@falldown If stock gains is your primary income & you show it as "income from business" (as opposed to "income from other sources") during filing income taxes, then only you're taxed at your existing income slab (your income being the yearly profit, provided you sold something during current year).

 

[falldown]

@brucepjr Sorry. My question isn't about stocks and i don't trade stocks too. This is about FoF mutual funds

 

[brucepjr]

@falldown Same principle.

 

[planter]

@brucepjr WHAT?!?!? can someone verify this?

 

[brucepjr]

@planter 5mins of research on google & you don't have to rely on others.

 

[grandpaseyes]

@falldown Fund of Funds is considered as debt for taxation.

 

[falldown]

@grandpaseyes No. It depends on FoF. for instance, this FoF is equity for taxation (15% for