Investments · Tax Year 2026-2027
Mutual Fund Tax Calculator
Estimate the withholding tax on your mutual fund dividend distributions or unit redemptions — 15% for filers, 30% for non-filers.
Step by step
How mutual fund tax is worked out
Enter your distribution or gain
The dividend distribution or redemption gain reported by your AMC.
Choose your filer status
Filers pay 15%; non-filers pay 30% on distributions.
See the tax withheld
Your AMC deducts this before crediting your account.
Check the net amount
What you actually receive after tax.
Good to know
Mutual fund tax essentials
Fund type matters
Equity, money market and income funds can be taxed differently — check your fund's specific rate with the AMC.
Deducted by the AMC
You don't pay this separately — it's withheld before your distribution or redemption proceeds reach you.
Keep your statements
Your AMC's tax certificate documents exactly what was withheld — keep it for your tax return.
Reading the result
Two ways money comes out, taxed differently
A fund can return money to you as a distribution or through redeeming units, and they are not the same event for tax. A distribution is income the fund has passed through. A redemption realises whatever gain your units have accumulated.
Investors who reinvest distributions rather than taking cash sometimes assume nothing taxable happened. The distribution was still made; it was simply used to buy more units.
What the fund holds matters
Rates differ according to the fund's own composition — an equity fund and a money market fund are not treated alike, because what they earn underneath is not alike. Checking the category on the fund manager's report before assuming a rate is worth the minute it takes.
The AMC deducts and reports
The asset management company withholds at source and issues a certificate. That certificate is the figure to carry into your return, and it will occasionally differ from your own arithmetic because of how the fund computed the NAV or apportioned a distribution. Where they differ, the certificate is what FBR has.
Where this stops
This applies a rate to an amount. It does not compute a gain across multiple purchases at different NAVs, and it does not cover voluntary pension scheme withdrawals, which have their own treatment.
FAQs
Mutual fund tax FAQs
How is mutual fund income taxed?
A distribution from a mutual fund is withheld at source like a dividend, but at a rate that depends on whether the underlying income came from debt securities or equities — 15% only applies to the equity share. Capital gains on redeeming units are charged separately under Section 37A. The default here is the equity rate; change it for a debt or money-market fund.
Does the fund type change the rate?
Yes, and by a lot. Division VII of Part I of the First Schedule rates the distribution by what the fund earned it on: income attributable to debt securities is withheld at 25% for an individual or AOP (50% off the Active Taxpayers' List) and 29% for a corporate unit-holder (58% off the list), while income attributable to equities is 15% (30% off the list). A money-market or income fund is therefore taxed at 25%, not the 15% this page defaults to — ask your AMC for the split and edit the rate.
Who deducts this tax?
The Asset Management Company (AMC) managing the fund withholds the applicable tax before crediting your distribution or redemption proceeds.
Is mutual fund tax final?
For most retail investors, tax on fund distributions is treated as a final tax similar to dividend tax. Complex or large holdings may have different treatment — consult your AMC or a tax advisor.
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