How STT is handled on mutual fund redemption

Tue, 19 May 2026 00:00:00 +0000

Securities Transaction Tax (STT) on mutual fund redemption is a minor cost on equity-mode MFs (0.001% of redemption value). The amount is negligible in absolute terms but is conceptually important: it qualifies your redemption for the lower equity LTCG/STCG rates under Sections 112A and 111A.

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How to place a mutual fund redemption (partial or full)

Tue, 19 May 2026 00:00:00 +0000

Placing a mutual fund redemption is operationally simple but the tax and timing consequences require attention. The settlement timeline depends on scheme type (T+0 for liquid, T+1 for equity, T+2 for debt typically), and the NAV applied depends on the cut-off rule.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC or platform. No affiliate commission is earned. For substantial redemptions, consult a CA for tax optimisation.

MF Redemption on WebNotes

How STT is handled on mutual fund redemption

How to place a mutual fund redemption (partial or full)