What is the taxation when we do STP to equity fund

When you do STP from MIP Mutual Fund scheme or any other debt scheme, and if the such STPs are within three years from the date of investment, then short term capital gains tax would be payable on the profits arising out of each STP transfer. See this tool to understand how tax is calculated on the STPs from debt fund to equity fund.

There is no hard and fast rule of STP with regards to transfer from one mutual fund scheme to the other. You can even transfer from equity fund to equity fund. Having said that, commonly STPs are used to transfer from liquid fund to equity fund with an idea to benefit from rupee cost averaging.

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