SIF taxation aligns with mutual funds for efficiency. No special advantages over other vehicles — consult your tax advisor for personalized guidance.
65%+ equity allocation
STCG (<1yr): 20%
LTCG (>1yr): 12.5% on gains >₹1.25L
Example: ₹15L in Quant QSIF held 8 months, ₹2L gain = ₹40k tax (20%)
<35% equity allocation
All gains: As per income tax slab
High earners: 30% tax rate
No indexation: From Budget 2025
35-65% equity allocation
If <65% equity: Treated as debt
If ≥65% equity: Treated as equity
Dynamic: Based on actual allocation
Based on Budget 2025 and asset classification
| SIF Class | STCG Hold/Rate | LTCG Hold/Rate | Exemption | Example Tax on ₹1L Gain |
|---|---|---|---|---|
| Equity-Oriented (≥65% equity) | <1 year/20% | >1 year/12.5% | >₹1.25L | LTCG: ₹12.5k (post exempt) |
| Debt-Oriented (<35% equity) | Any period/As per slab | Any period/As per slab | None | 30% slab: ₹30k |
| Hybrid (35-65% equity) | Varies/Varies | Varies/Varies | Varies | Depends on allocation |
Tax implications can vary based on individual circumstances, changes in tax laws, and specific SIF structures. This information is based on current tax laws as of August 2025. Please consult a qualified tax advisor for personalized advice before making investment decisions.