How is Long-Term Capital Gains (LTCG) tax calculated on Mutual Fund SIPs?

Under Budget 2024, LTCG on equity mutual funds held for more than 12 months is tax-free up to ₹1,25,000 per financial year. Any excess capital gain is taxed at 12.5%.

How is each monthly SIP installment treated for tax purposes?

Under Indian income tax law, each SIP installment is considered a separate purchase with its own holding period. Each specific installment must complete 12 months before redemption to qualify as LTCG.

How is each monthly SIP installment treated for tax purposes?

Under Indian tax law, each individual SIP installment is treated as a separate purchase with its own acquisition date. To qualify for LTCG, each specific installment must complete 12 months of holding before redemption.

Can NRIs invest in mutual funds through SIP in India?

Yes, Non-Resident Indians (NRIs) can invest in Indian mutual funds via NRE or NRO bank accounts. Redemption proceeds are subject to TDS at source, and CA certification (Form 15CA/15CB) may be required for foreign repatriation.

What is the power of compounding in a Systematic Investment Plan (SIP)?

SIP leverages rupee cost averaging and compound interest: earnings generated from your investments generate their own earnings over time. Compounding exponentially accelerates total wealth creation in the latter half of the investment tenure.

Free Financial Tool

SIP & Wealth Calculator

Calculate compound wealth returns and estimated maturity amounts on your Systematic Investment Plans (SIP) with updated Budget 2024 tax rules.

Compound Growth

SIP Investment Parameters

Monthly Investment Amount (₹) *₹10,000

₹

Expected Annual Return Rate (p.a.) *12%

Investment Time Horizon (Years) *10 Years

Wealth Projection

Expected Maturity Corpus

₹23,23,391

Total gain multiplier: 1.94x of principal

Total Invested (Principal):₹12,00,000

Estimated Wealth Gain:+ ₹11,23,391

LTCG Tax Exemption (Budget 2024):₹1,25,000 / year

Est. LTCG Tax on Exit (12.5%):₹1,29,791

Principal (52%) Gain (48%)

Planning mutual fund tax harvesting or capital gains reinvestment?

Consult CA on Capital Gains Tax

Tax Harvesting Advisory

Legally utilize the ₹1.25 Lakh annual tax-free capital gain limit every financial year through systematic profit booking.

ELSS Tax Saving Mutual Funds

Claim up to ₹1,50,000 deduction under Section 80C under the Old Tax Regime with a 3-year lock-in period.

NRI Investment & Form 15CA/CB

We assist NRIs with seamless mutual fund tax calculations, TDS optimization, and overseas capital repatriation certifications.

Investment Taxation

Frequently Asked Questions

Got Questions?

Frequently Asked Questions

Quick answers to common questions regarding taxation, audit, and advisory.

Following the Union Budget 2024, Long-Term Capital Gains (holding period > 12 months) on equity mutual funds are tax-exempt up to ₹1,25,000 per financial year. Any capital gain exceeding ₹1.25 Lakh is taxed at a flat rate of 12.5% (without indexation).

Need Expert Advice on Capital Gains & Portfolio Taxation?

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