Equity oriented fund is a fund in which more than 65% of fund value is invested in equity shares. Units of Equity oriented funds are termed as Equity Oriented Units.
In case STT is paid on sale of equity oriented units, Short Term Capital Gain(STCG) is taxable @ 15% and Long Term Capital Gain(LTCG) is exempt. In case STT is not paid, then STCG will be taxable at Normal Rates and LTCG will be taxable @ 20% with Indexation.
Equity oriented unit, equity, shares, fund value, investment, tax This article explains the term equity oriented unit. It also explains the taxation of sale of equity oriented units.
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