What is the difference between LTCG and STCG tax on mutual funds?

For equity funds: STCG (held under 12 months) is taxed at 20%; LTCG above Rs1.25 lakh per year is taxed at 12.5% with no indexation. For debt funds post-April 2023: all gains are taxed at slab rate regardless of holding period. Always check your holding period before redeeming to optimize the tax outcome.