How much tax on ₹4 lakh long-term capital gains from mutual funds?

Based on these numbers, tax payable is about ₹34,375 on ₹2,75,000 taxable gain.

How are equity gains taxed?

For listed equity shares and equity-oriented mutual funds: short-term gains (held under 12 months) are taxed at 20% under Section 111A. Long-term gains (held over 12 months) are taxed at 12.5% under Section 112A, but only on the amount exceeding ₹1.25 lakh in total equity LTCG per financial year. These rates apply from 23 July 2024 onward and are unchanged for FY 2025-26 and FY 2026-27.