How can I reduce taxes on mutual funds in the long term?

I am 38 yrs old. I am investing my surplus savings in mutual funds for the last eight years, which is giving me decent returns. I don’t see any near-term major expenses like home, education or marriages. As a result my investments are growing. My only fear is taxes when I will need money, maybe at retirement or after 20 years. Can you please suggest how I can reduce taxes in the long term?
–Shinde Yogesh

You will have to pay long term capital gains tax on your equity mutual funds held over a year. LTCG tax on equity mutual funds is 10%. However, gains are exempted from tax up to Rs 1 lakh in a financial year. You can use this provision to earn tax-free returns. However, if your long term capital gains exceed Rs 1 lakh, you will have to pay taxes. If you sell your equity mutual funds before a year, you have to pay a short term capital gains tax of 15%.

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