STCG on International Mutual Fund

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Prashant Shah (Querist)
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20 January 2026 Few months back I book profit in international equity mutual fund. As it was invested around 14 months so it is STCG. Apart from this I sell some indian equity mutual fund with loss within one year which cause loss in short term.
As per my research gain on international fund redemption is going to be added in taxable income same as debt funds and this gain is not under capital gain consideration (correct me if wrong).
My query is can I balance my indian equity MF loss against international MF gain?
Or as this international MF gain is going to be part of my income and above indian short term loss need to get balance with my other equity LTCG and equity STCG?
Share your insight please.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 January 2026 Yes, you can balance your Indian equity mutual fund loss against your international mutual fund gain. While international funds are taxed at your income tax slab rates (if purchased on or after April 1, 2023), they are still classified as Short-Term Capital Gains (STCG) under the head "Capital Gains" (Section 50AA). Because both the loss (from Indian equity MFs) and the gain (from international MFs) fall under the same head—Capital Gains—you are allowed to set them off against each other.

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