Equity-oriented mutual funds in India, defined as schemes with at least 65% in domestic shares, face long-term capital gains tax of 12.5% on gains above ₹1.25 lakh if held over 12 months, and short-term gains are taxed at 20% if units are held for 12 months or less. Only gains accrued after January 31, 2018, shall be taxable in FY27.