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

1 - Short Term Capital Gains (STCG) - Stocks sold less than 12 months of holding period would be taxed at 15% of the gains. Not applicable on losses.
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2 - Long Term Capital Gains (LTCG) - Stocks sold more than 12 months of holding period with a gain of over Rs.1,00,000 would be taxed at 10% of the gains from Apr 1, 2018.

For more info, please refer to the FAQs drafted by the Central Board of Direct Taxes - http://incometaxindia.gov.in/News/FAQ-on-LTCG.pdf

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