InCred Premier Tax Reckoner 2026-27

Thu, 21 May 2026

5

Personal Finance

Explore the InCred Premier Tax Reckoner for FY 2026–27, featuring key tax updates, deductions, investment insights, liquidity planning considerations, and important financial timelines. Designed to help you stay informed throughout the financial year, this guide covers essential aspects of tax and financial planning across various investment avenues.

• Snapshot of Income-tax rates specific to Mutual Funds

  Applicable for the tax year 2026-27 subject to enactment of Finance Bill, 2026

• Capital Gains Taxation for Mutual Funds (Equity Oriented)

  Equity Oriented Schemes (minimum 65% invested in listed equity shares of domestic companies)

  Nature of Gain	Individual/HUFs	Domestic Company	NRIs
  Long Term Capital Gains (> 12 months)	12.5%**	12.5%**	12.5%**
  Short Term Capital Gains (<= 12 months)	20%**	20%**	20%**

  Other Than Equity Oriented Schemes^&

  Includes Gold/Silver ETFs, Fund of Funds. Holding period: >24 months (>12 for Gold/Silver ETFs for LTCG).

  Nature of Gain	Individual/HUFs	Domestic Company	NRIs
  Long term capital gains (Not applicable for specified mutual fund schemes)	12.5%**	12.5%**	12.5%**
  Short term capital gains (Including specified mutual fund schemes)	Applicable slab rates	Applicable slab rates	Applicable slab rates

  & This includes schemes such as Gold and Silver Exchange Traded Fund (ETF), Gold and Silver Fund of Fund.

• Income-tax implications on income in respect of units of a Mutual Fund

  Withholding Tax Rate (Mutual Fund Units)

  Type of Investor	Withholding Tax Rate
  Resident****	10%*
  NRI	20%** or rate as per applicable tax treaty*** (whichever is lower)

• Income Tax Rates

  Total Income (₹)	Tax Rates
  Up to 4,00,000	NIL
  From 4,00,001 to 8,00,000	5%
  From 8,00,001 to 12,00,000	10%
  From 12,00,001 to 16,00,000	15%
  From 16,00,001 to 20,00,000	20%
  From 20,00,001 to 24,00,000	25%
  Above 24,00,000	30%

  Income Tax Rates - Old Regime

  Total Income (₹)	Tax Rates
  Up to Rs. 2,50,000	NIL
  Rs. 2,50,001 to Rs. 5,00,000	5%
  Rs. 5,00,001 to Rs. 10,00,000	20%
  Rs. 10,00,001 and above	30%

• Securities Transaction Tax (STT)

  Transaction	% Rates	Payable by
  Purchase/ Sale of equity shares (delivery based)	0.1%	Purchaser/Seller
  Purchase of units of equity oriented mutual fund	NIL	Purchaser
  Sale of units of equity oriented mutual fund (delivery based)	0.001%	Seller
  Sale of equity shares, units of business trust, equity oriented MF (non-delivery)	0.025%	Seller
  Sale of an option in securities	0.15%	Seller
  Sale of an option in securities (exercised)	0.15%	Purchaser
  Sale of a futures in securities	0.05%	Seller
  Sale/redemption of unit of equity oriented fund to insurance co (ULIP)	0.001%	Seller
  Sale of units of an equity oriented fund to the Mutual Fund	0.001%	Seller
  Sale of unlisted equity shares and units of business trust under initial offer	0.2%	Seller

• Capital Gains

  Transaction	Short-term capital gains(a)	Long-term capital gains(a)***
  Sale transactions of equity shares/ unit of an equity oriented fund which attract STT	20%	12.5%*
  Sale transactions of units of specified mutual fund as defined earlier acquired on or after 1st April 2023	Slab rates	NA
  Sale transaction other than mentioned above:
  Individuals (resident and non-residents)	Progressive slab rates	12.5%
  Firms	30%	12.5%
  Resident companies	30% / 25%(b) / 22% / 15%	12.5%
  Overseas financial organizations specified in section 208	35% (corporate) 30% (non-corporate)	12.5%
  FPIs (other than gains under section 196 and section 198)	30%	12.5%
  Foreign companies other than ones mentioned above	35%	12.5%
  Local authority	30%	12.5%
  Co-operative society rates	Progressive slab or 22%(e) / 15%(f)	12.5%

• Notes

  Notes: Capital Gains Taxation for Mutual Funds

  • Note 1 - Capital gains from transfer of units of “specified mutual fund schemes” acquired on or after 1st April 2023 are treated as short term capital gains taxable at applicable
  • slab rates as provided above irrespective of the period of holding of such mutual fund units. For this purpose, “specified mutual fund” means (a) a Mutual fund which invests
  • more than 65% of its total proceeds in debt and money market instruments; or (b) a fund which invests 65% or more of its total proceeds in units of a fund referred to in above
  • sub-clause (a).
  • * Rate of 12.5% to be levied on long-term capital gains exceeding Rs. 1.25 lakh provided Securities Transaction Tax (‘STT’) is paid on transfer of such units.
  • $ Plus applicable Surcharge and “Health and Education Cess” (refer below notes on Old and New Regime).
  • ** For gains on transfer/redemption (without indexation benefit and foreign exchange fluctuation). For determining nature of gains (i.e. long term or short term) on mutual fund
  • unit listed on recognized stock exchange in India, period of holding of 12 months is to be considered.
  • @ Surcharge at 7% on base tax is applicable where total income of domestic corporate unit holders exceeds Rs 1 crore but does not exceed 10 crores and at 12% where total
  • income exceeds 10 crores. However, surcharge at flat rate of 10 percent to be levied on base tax for the companies opting for lower rate of tax of 22%/15%. Further, “Health and
  • Education Cess” to be levied at the rate of 4% on aggregate of base tax and surcharge.
  • # Short term/ long term capital gain tax (along with applicable Surcharge and Health and Education Cess) will be deducted at applicable rate at the time of redemption of units
  • in case of NRI investors. Tax treaty benefit can be claimed for withholding tax on capital gains subject to fulfillment of stipulated conditions.
  • Transfer of units upon consolidation of mutual fund schemes or consolidation of plans within mutual fund schemes in accordance with applicable SEBI (Mutual Funds) Regulations
  • is exempt from capital gains.
  • Relaxation to non-residents from deduction of tax at higher rate (except income distributed by mutual fund) in absence of PAN subject to providing specified information and
  • documents.

  Notes: Income-tax implications on income in respect of units of a Mutual Fund

  * Tax is not deductible if income in respect of units of a mutual fund is below Rs. 10,000 in a tax year.

  ** Plus applicable Surcharge and “Health and Education Cess” (refer below notes on Old and New Regime).

  *** The income distributed by mutual fund to unitholders is unlikely to fall within definition of dividend under tax treaty. Given this and language of section 393(2) [Table: S.No.

  10] read with Note 2, claiming tax treaty benefit in respect of income distributed by mutual fund to unitholders for withholding tax purpose may not be possible.

  **** In the case of a resident person, if PAN has become inoperative due to PAN – Aadhaar not being linked, tax could be withheld at a higher rate of 20%.

  Notes: Income Tax Rates - Old Regime

  (a) In case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 3,00,000.

  (b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs 5,00,000.

  (c) Rate of surcharge:

  • 37% - specified income* exceeds Rs. 5 crores;

  • 25% - specified income* exceeds Rs. 2 crore upto Rs. 5 crores

  • 15% - total income exceeds Rs. 1 crore upto Rs. 2 crores; and

  • 10% - total income exceeds Rs 50 lakhs upto Rs. 1 crore.

  (d) Health and Education cess @ 4% on aggregate of base tax and surcharge.

  (e) Resident individuals having total income upto Rs. 5,00,000 can avail rebate of 12,500 or actual tax liability whichever is lower.

  Notes: Income Tax Rates - New Regime

  a) For adopting New Regime, most of the deductions/exemptions such as section 123, 126, etc. are to be foregone. However, standard deduction of Rs. 75,000 against salary

  income is allowed. The aforesaid regime is default unless opted out.

  b) Resident individuals having total income not exceeding Rs. 12,00,000 can avail rebate of 60,000 or actual tax liability whichever is lower.

  c) Rate of surcharge:

  • 25% - specified income* exceeds Rs. 2 crores

  • 15% - total income exceeds Rs. 1 crore upto Rs. 2 crores; and

  • 10% where total income exceeds Rs 50 lakhs upto Rs. 1 crore.

  In case of AOP, consisting of only companies as its members, the rate of surcharge not to exceed 15%.

  *Specified income – Total income excluding income by way of dividend on shares and (short term capital gains in case of listed equity shares, equity-oriented mutual

  fund units, units of business trust) and long-term capital gains.

  d) Health and Education cess @ 4% on aggregate of base tax and surcharge.

  Notes: Capital Gains

  * Long-term capital gains exceeding Rs. 1.25 lakh will be taxable at 12.5%** (without indexation benefit and foreign exchange fluctuation)

  ** For determining nature of gains (i.e. long term or short term) on mutual fund unit listed on recognized stock exchange in India, period of holding of 12 months is to be considered.

  (a) These rates will further increase by applicable surcharge & health and education cess.

  (b) If total turnover or gross receipts in the tax year 2024-25 does not exceed Rs. 400 crores.

  (c) This lower rate is optional and subject to fulfilment of certain conditions as provided in section 200.

  (d) This lower rate is optional for companies engaged in manufacturing business (set-up & registered on or after 1 October 2019) subject to fulfilment of certain conditions

  as provided in section 201.

  (e) Co-operative societies have the option to be taxed at progressive slab rates or 22% subject to fulfilment of certain conditions as provided in section 203.

  (f) This lower rate is optional for co-operative societies engaged in manufacturing or production business (set-up & registered on or after 1 April 2023) subject to fulfilment of certain conditions as provided in section 204.
   

  Download the Tax Reckoner 2026-27 PDF to get complete access

• Disclaimer

  The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. InCred Premier will not be liable in any manner for the consequences of such action taken by you. There are no guaranteed or assured returns under any of the scheme of InCred Premier.

  Mutual Fund investments are subject to market risks, read all scheme related documents carefully.