Identify the mutual fund type: equity, debt, hybrid, or international
Determine the holding period from purchase date to redemption date
Check whether the fund is classified as short-term or long-term based on applicable tax rules
Calculate capital gain as redemption value minus purchase cost and eligible expenses
For equity mutual funds, apply short-term or long-term capital gains tax rates as per current law
For debt mutual funds, apply the applicable capital gains tax rules based on the purchase date and holding period
Include dividend income separately if any dividend was received, as it may be taxable in your hands
Consider indexation only if it is allowed under the applicable tax rules for that fund and holding period
Adjust gains for any exit load or redemption charges if applicable
Use the correct tax slab rate where the law requires taxation at slab rates
Add the taxable gain to your total income if required and compute tax accordingly
Apply any eligible exemptions or set-off rules if permitted under current tax provisions
Check if tax deducted at source applies to your redemption and factor it into the final tax payable
Verify the latest tax rules for your country before filing, as mutual fund taxation can change