Mutual Fund Tax Calculator India for SIP & Lumpsum
A Mutual Fund Tax Calculator for SIPs and Lumpsum. Calculate your STCG and LTCG tax liability with fully adjustable rates.
SIP And Mutual Fund Tax Calculator – How Capital Gains Tax Is Calculated
Monthly Investment
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Time Period
Years
Annual Return (XIRR)
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%
%
₹
Default values are per FY 2024-25 budget.
Tax Analysis
Estimated Tax Liability
₹842
Post-Tax Value: ₹4,11,590
| Type | Gains | Tax |
|---|---|---|
STCG Short Term | ₹4,047 | ₹842 |
LTCG Long Term | ₹1,08,385 | ₹0 |
| Total | ₹1,12,432 | ₹842 |
*Includes 4% Cess on Tax amount
Pro Tip: Use our
SIP Calculator
to verify your pre-tax returns before estimating your tax liability here.
Disclaimer: This Mutual Fund Tax Calculator is for
educational and estimation purposes only.
It assumes full redemption at the end of the investment period and applies
current tax rules for a single financial year.
Actual tax liability may vary based on redemption dates, applicable laws,
and individual circumstances. This does not constitute tax or investment advice.
Frequently Asked Questions
What is STCG and LTCG in Mutual Funds?
STCG (Short Term Capital Gains) tax applies if you sell your equity mutual fund units within 12 months of buying them. The rate is flat 20%.
LTCG (Long Term Capital Gains) tax applies if you sell units after holding them for more than 12 months. The rate is 12.5% on gains exceeding ₹1.25 Lakh per financial year.
LTCG (Long Term Capital Gains) tax applies if you sell units after holding them for more than 12 months. The rate is 12.5% on gains exceeding ₹1.25 Lakh per financial year.
How are SIPs taxed in India (FIFO Method)?
SIPs are taxed using the First-In-First-Out (FIFO) method. Each monthly installment is treated as a separate investment. See the AMFI Taxation Guide for more details.
- If you redeem units purchased in Jan 2024 in March 2025 (>12 months), they attract LTCG tax.
- If you redeem units purchased in June 2024 in March 2025 (<12 months), they attract STCG tax.
What are the latest Tax Rates for FY 2024-25?
According to the Union Budget 2024, the rates for Equity funds are:
- STCG: 20% on gains from units sold within 12 months.
- LTCG: 12.5% on gains exceeding ₹1.25 Lakh per year (held >12 months).
Note: A 4% Cess is included in the final calculation.
What is ‘Harvesting’ of Capital Gains?
Tax harvesting involves selling mutual fund units to book long-term gains up to the ₹1.25 Lakh tax-free limit and immediately reinvest the proceeds. This increases your purchase cost (grandfathering) for future calculations, effectively reducing your future tax liability.
How are Debt and Hybrid Mutual Funds taxed?
This calculator is optimized for Equity Funds (>65% equity). For others:
- Debt Funds: Gains are added to your income and taxed as per slab. Use our Capital Gains Calculator for accurate calculations.
- Hybrid Funds: Funds with >65% equity follow equity taxation. Others are taxed as per slab rates.
Can I set off Mutual Fund losses against gains?
Yes. According to the Income Tax Act:
- Short Term Capital Loss (STCL): Can be set off against both STCG and LTCG.
- Long Term Capital Loss (LTCL): Can only be set off against Long Term Capital Gains.
How are Dividends (IDCW) taxed vs Growth option?
Growth Option: Tax is paid only upon sale (Capital Gains).
IDCW Option: Dividends are added to your income and taxed at your slab rate. TDS of 10% applies if dividends exceed ₹5,000/year.
IDCW Option: Dividends are added to your income and taxed at your slab rate. TDS of 10% applies if dividends exceed ₹5,000/year.
What is the Grandfathering Clause (Jan 31, 2018)?
Gains made up to Jan 31, 2018, are tax-exempt. The Cost of Acquisition is calculated as the higher of: (1) Actual cost, or (2) Lower of Sale Price and FMV on Jan 31, 2018. See this guide for details.
What is the Securities Transaction Tax (STT)?
STT is a tiny tax (0.001%) levied on the value of equity mutual fund units sold. It is deducted at source by the fund house or exchange and is separate from the Capital Gains Tax calculated here.
Are ELSS (Tax Saving) Funds tax-free?
Investments in ELSS qualify for Section 80C deductions, but the returns are taxable. After the 3-year lock-in, gains are treated as LTCG and taxed at 12.5% (above the ₹1.25L exemption).