International Mutual fund redemption

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Discussion is about taxation of international mutual fund redemption showing STCG on MF Central. Clarification: such funds are treated as non-equity (debt-like), so gains within 36 months are STCG taxed at slab rates. Query further asks set-off rules against equity STCG/LTCG losses.

Prashant Shah

Prashant Shah (Querist)

02 January 2026 I invested 1.5 lakh in FY 2023-24, in FY 2024-25 after holding more than a year, I redeem them with profit of 46,000. Now when I check it in MFcentral.com it shows the gain under STCG. International funds redemption and tax calculation is little bit different.
My question is will this be part of my short term equity gain(as mention in mfcentral) or will be considered as short term gain under debt funds? In case of debt fund. will this get added to my taxable income or there will be any fixed tax rate (percentage) applicable on this redemption.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

02 January 2026 International mutual funds are treated as non-equity (debt-like) funds for tax purposes, regardless of their equity exposure. Since you redeemed the units within 36 months, the profit of ₹46,000 is Short-Term Capital Gain, correctly shown as STCG by MF Central. This gain will be added to your taxable income and taxed at your applicable slab rate, with no concessional percentage or equity benefit available.

Prashant Shah

Prashant Shah (Querist)

02 January 2026 Thanks for prompt reply Sir.

If I got this correctly, so this gain will not get settle against my existing short term equity losses, right?
Also, my current short term equity losses will get balanced against the gain from other equity mutual funds and stocks (both short term and long term).

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