How to compute capital gains tax for redemption after doing SIP?

Jul 8, 2019
I Know that investing in mutual fund is tax free after 1 year but investing every month certain amount for 12 months and redeeming it after 1 day of 12 month completion, what will be the tax treatment
1 Answer
Jul 9, 2019

Vishal,  first off, investing in mutual funds is not tax free after 1 year. There are many types of mutual funds and the gains are indeed taxed.  The table below gives a quick overview of the taxation.

And to calculate tax, each investment is treated separately.  SIP is more of an arrangement between you, the bank and the AMC.  For taxation, the actual investment is looked at and not how you made it.

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