I wanted to know about the tax rules that is applicable on various categories of Mutual funds

Please note the following in response to your query -

1. Equity Oriented Mutual Funds - Long Term Capital Gains (units held for more than 12 months) = NIL

2. Equity Oriented Mutual Funds - Short Term Capital Gains (units held for 12 months or less) = 15%

3. Equity Oriented Mutual Funds - Dividends are Tax Free

4. Schemes other than Equity Oriented Funds, Like Debt Funds or Liquid Funds - Long Term Capital Gains (units held for more than 36 months) = 20% with indexation benefit. No TDS at source for resident individuals. However, for NRIs tax is deducted at source

5. Schemes other than Equity Oriented Funds, Like Debt Funds or Liquid Funds - Short Term Capital Gains (units held for less than 36 months) = 30%. No TDS at source for resident individuals. However, for NRIs tax is deducted at source

6. Schemes other than Equity Oriented Funds, Like Debt Funds or Liquid Funds - Dividends in the hand of the Investor is tax free. However, dividend distribution tax @ 25% is payable by the scheme.

7. Taxation for ELSS category and Equity Oriented Hybrid Funds (popularly known as Balanced Funds) is same as that of Equity Oriented Mutual Funds.

8. Taxation for Debt oriented Balanced Funds (popularly known as MIPs) is same as that of Debt Funds (Schemes other than Equity Oriented Funds)