smallcases are nothing but baskets of stocks bought & managed together

The same taxation guidelines that apply for stocks apply for smallcases as you're eventually holding them in single stocks format

If you sell your smallcase stock investments after 12 months of buying, your investments would qualify for long-term capital gains tax which is applicable at 10% of the gains, if the gains exceed Rs. 1,00,000.

If you sell your smallcase stocks before 12 months of holding, you will have to pay a short-term capital gains tax at the rate of 15% on the profits made (not applicable on losses)

The dividend will be taxed only in the hands of the recipients at their applicable rate.