How to debt and equity mutual funds redemption are taxed? Also how to add redemption amount in income tax filling?

Taxation on capital gains depends on the time for which you stay invested in them, which is known as holding period of mutual funds. Below table gives a specific classification of short-term and long-term

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For example, if you opt to redeem your Equity funds after 2 years, then the tax-rate applicable to your long-term capital gain amount would be 10% after deducting 1 lakh. So, if your gain is 1.2 lakhs then 10% will be taxed on Rs. 20000 as 1 lakh is exempted and so no tax to be paid for 1 lakh rupees.