The tax implications for smart beta smallcases would be the same as equities.
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)
Dividends on stocks are tax-free in the investors' hands