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Equity Mutual Fund - Capital Gains on Full Withdrawal? (Jan 2020 - Feb 2023)

T S Khurana |536 Answers |Ask -Follow

Tax Expert - Answered on Jan 20, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
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A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by Vishal on Dec 17, 2024Hindi

Money

I have been doing SIP in an equity mutual fund of Rs 2000 in an equity mutual fund from Jan 2020 to Feb 2023. The total amount has grown to 1.25 Lakh. If I make full withdrawl, how will my capital gains be taxed?

Ans: This transaction would be covered under LTCG. However, there is exemption of Rs.1,25,000.00 from LTCG & amount of your LTCG may be even less than this amount, hence no tax may be payable on this.
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

Asked by Anonymous - Jun 14, 2023Hindi

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Hello sir, I have big amount @ 25 lac invested in equity mutual funds through sip. SIP still continues. How should I withdraw my money in such a way that I can save tax on it? At same time I want to continue my sips.

Ans: To withdraw your money from equity mutual funds while minimizing tax implications and continuing your SIPs, you can consider the following strategies:

Systematic Withdrawal Plan (SWP): Opt for an SWP to withdraw a fixed amount regularly from your mutual fund investment. By withdrawing less than your gains, you may reduce the tax impact as only the capital gains portion is taxable. This allows you to continue benefiting from potential market growth while accessing funds for your needs.

Long-term Capital Gains (LTCG) Tax Benefits: If your equity mutual fund investment has completed more than one year, it qualifies for long-term capital gains tax benefits. LTCG up to Rs. 1 lakh in a financial year is tax-exempt, and any gains beyond that are taxed at 10% without indexation. Consider withdrawing within this limit to minimize tax liability.

Tax Harvesting: Assess your investments periodically and consider redeeming units with minimal gains to utilize the tax-free limit effectively. This strategy involves selling investments to realize capital losses, which can be set off against capital gains, thereby reducing your tax liability.

Rebalancing: Evaluate your portfolio regularly and rebalance it to align with your investment goals and risk tolerance. You can redeem units from overperforming funds to maintain the desired asset allocation while generating funds for your requirements.

Consult a Financial Advisor: Seeking guidance from a financial advisor can help you develop a tax-efficient withdrawal strategy tailored to your financial objectives and tax situation. They can provide personalized recommendations based on your investment horizon, risk profile, and tax-saving goals.

By employing these strategies, you can withdraw funds from your equity mutual fund investments tax-efficiently while continuing your SIPs to pursue long-term wealth accumulation. However, it's essential to assess the tax implications and consult with a financial advisor before making any decisions.

Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

Asked by Anonymous - Nov 29, 2023Hindi

Money

Hi. I am a housewife and doing small investments thru Sip in mutual funds. If I sale all mutual funds after 3 to 4 years, will i have to pay tax during IT filling or automatically tax will be deducted and funds will be credited to my bank account?

Ans: If you sell your mutual funds after holding them for 3 to 4 years, you may be subject to capital gains tax on any profit earned from the sale. The tax implications depend on whether the gains are classified as short-term or long-term capital gains.

For equity mutual funds held for more than one year, any gains exceeding Rs. 1 lakh are subject to long-term capital gains tax at a rate of 10% without indexation. However, gains up to Rs. 1 lakh are exempt from tax. For gains realized within one year of investment, they are considered short-term capital gains and taxed at a rate of 15%.

Tax on capital gains from mutual funds is not automatically deducted. It's your responsibility to calculate and report these gains while filing your income tax return. You can utilize the consolidated statement provided by your mutual fund house to determine the gains and report them accurately. If there are any taxes due, you would need to pay them while filing your income tax return.

Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2024

Asked by Anonymous - May 26, 2024Hindi

Money

let me know that if i take sip of one mutual fund monthly 50000 for 5 years how will be the income tax for capital gains?

Ans: If you invest Rs 50,000 monthly in a mutual fund through SIPs for five years, the taxation of your gains depends on the type of mutual fund and the holding period. It’s important to understand how capital gains taxes work to plan your investments efficiently.

Types of Capital Gains

Short-Term Capital Gains (STCG): Gains from units held for less than three years are considered short-term. These are taxed at a higher rate.

Long-Term Capital Gains (LTCG): Gains from units held for more than three years are considered long-term. These attract a lower tax rate.

Taxation Based on Mutual Fund Type

Equity-Oriented Funds: If your mutual fund invests primarily in equity, any gains after holding for more than one year are long-term. These are taxed at 12.5% if the gain exceeds Rs 1.25 lakh in a financial year. Short-term gains (held for less than one year) are taxed at 20%.

Debt-Oriented Funds: Capital gains are added to your income and taxed at your income tax slab rate.

SIP Specific Taxation

Individual SIPs Treated Separately: Each SIP is considered a separate investment. So, if you invest Rs 50,000 monthly, each investment is tracked individually for tax purposes. For example, SIPs made in the first year will become long-term after one year, but those made in the fifth year will be short-term until the next year.

Rolling Nature of Investments: Since you’re investing monthly, you’ll have a mix of short-term and long-term capital gains when you start redeeming. You need to plan redemptions carefully to minimise taxes.

Disadvantages of Index Funds

Limited Flexibility: Index funds cannot adapt to market changes. They simply track the market, which might not always align with your financial goals.

Potential for Lower Returns: Actively managed funds can outperform the market, offering potentially higher returns. Index funds miss out on this opportunity.

The Role of Regular Funds Managed by CFPs

Expert Management: Regular funds managed by a Certified Financial Planner offer tailored advice. This ensures your investments align with your financial goals and risk profile.

Better Tax Planning: A CFP can help you manage your redemptions to minimise taxes. They can also recommend tax-efficient investment strategies.

Investment Strategy Considerations

Invest in Tax-Efficient Funds: Consider funds that offer tax benefits or have a tax-efficient structure. This can maximise your post-tax returns.

Monitor Tax Implications: Keep track of your capital gains and plan redemptions accordingly. Avoid unnecessary taxes by holding investments for the required period.

Consider Increasing SIPs Over Time: As your income grows, increase your SIP contributions. This will enhance your wealth creation without a significant increase in tax liability.

Final Insights

Investing Rs 50,000 monthly through SIPs is a strong strategy for wealth creation. However, understanding the tax implications is crucial. By focusing on the right type of funds and managing your redemptions wisely, you can optimise your returns and minimise your tax liability. Regularly consulting with a Certified Financial Planner will help ensure your investments remain tax-efficient and aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Asked by Anonymous - Jul 24, 2024Hindi

Money

Dear Sir, i have been investing in mutual funds since 2008 total invested money so far is 14 lakh through sip and lumsum, now current value is around 37 lakh . what shall be my capital gain if i withdraw this amount. sandeep

Ans: Understanding Your Capital Gains
Sandeep, you have been investing in mutual funds since 2008. Your total investment is Rs 14 lakh through SIPs and lump sums. Now, the value of your investment is Rs 37 lakh.

Calculating Capital Gains
Your capital gain is the profit you earn from your investments. It is the difference between the current value and the amount you invested.

So, the calculation is:

Total Investment: Rs 14 lakh
Current Value: Rs 37 lakh
Capital Gain: Rs 37 lakh - Rs 14 lakh = Rs 23 lakh
Taxation on Capital Gains
Long-Term Capital Gains (LTCG)
Since you have held the mutual funds for more than three years, they are considered long-term investments. Long-term capital gains (LTCG) on equity mutual funds are taxed at 10% if the gains exceed Rs 1 lakh in a financial year. (In the recent budget, LTCG tax on equity mutual funds is revised to 12.5%. LTCG exemption is revised from 1 lakh to 1.25 lakh per financial year)

Steps to Consider
Plan for Taxes
Understand that LTCG above Rs 1 lakh will be taxed at 10%./ revised to 1.25 lakh and 12.5% respectively.
Calculate the tax liability on your Rs 23 lakh gain.
Reinvest Wisely
Consider reinvesting your gains in other mutual funds.
Diversify your portfolio for better risk management and returns.
Consult a Certified Financial Planner
Get professional advice to optimize your tax and investment strategy.
Benefits of Actively Managed Funds
If you decide to reinvest, consider the advantages of actively managed funds:

Expertise: Professional managers aim to outperform the market.
Flexibility: Fund managers can adjust strategies based on market conditions.
Avoid Index Funds
Limited Growth: Index funds only replicate the market.
No Active Management: Lack of professional decision-making.
Regular Funds Over Direct Funds
Expert Guidance: Regular funds come with the benefit of professional management.
Time-Saving: A CFP can manage your investments, saving you time and effort.
Final Insights
You have done well by investing regularly in mutual funds. To maximize your gains and minimize tax, plan your withdrawals carefully. Consider reinvesting in actively managed funds and consult a Certified Financial Planner for tailored advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Sep 19, 2025

Question by Rajeev - Sep 11, 2025Hindi

Money

I have started sip of rs.5000/- per month since July 2017, till date i have invested approximately 5 lakh and its nav is approximately 7.6 lakh. Now I want to withdraw whole amount. My question is what will be my tax liability ?

Ans: Hi Rajeev,

I understand that there must be an emergency if you are willing to withdraw whole amount. However that is not recommended.
Have you tried taking loan against your mutual fund holdings? This is an option for you to consider.

Coming back to your question, tax liability depends on the type of fund. Equity funds are taxed as LTCG if held for more than 1 year. 12.5% tax with 1.25 exempt. For holding less than 1 year, STCG tax.
For debt funds - taxable at your tax slab if held for less than 3 years.

Do try another option if you have rather than withdrawing entirely.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

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Hello, I am currently in Class 12 and preparing for JEE. I have not yet completed even 50% of the syllabus properly, but I aim to score around '110' marks. Could you suggest an effective strategy to achieve this? I know the target is relatively low, but I have category reservation, so it should be sufficient.

Ans: With category reservation (SC/ST/OBC), a score of 110 marks is absolutely achievable and realistic. Based on 2025 data, SC candidates qualified with approximately 60-65 percentile, and ST candidates with 45-55 percentile. Your target requires scoring just 37-40% marks, which is significantly lower than general category standards. This gives you a genuine advantage. Immediate Action Plan (December 2025 - January 2026): 4-5 Weeks. Week 1-2: High-Weightage Chapter Focus. Stop trying to complete the entire syllabus. Instead, focus exclusively on high-scoring chapters that carry maximum weightage: Physics (Modern Physics, Current Electricity, Work-Power-Energy, Rotation, Magnetism), Chemistry (Chemical Bonding, Thermodynamics, Coordination Compounds, Electrochemistry), and Maths (Integration, Differentiation, Vectors, 3D Geometry, Probability). These chapters alone can yield 80-100+ marks if practiced properly. Ignore topics you haven't studied yet. Week 2-3: Previous Year Questions (PYQs). Solve JEE Main PYQs from the last 10 years (2015-2025) for chapters you're studying. PYQs reveal question patterns and difficulty levels. Focus on understanding why answers are correct, not memorizing solutions. Week 3-4: Mock Tests & Error Analysis. Take 2-3 full-length mock tests weekly under timed conditions. This is crucial because mock tests build exam confidence, reveal time management weaknesses, and error analysis prevents repeated mistakes. Maintain an error notebook documenting every mistake—this becomes your revision guide. Week 4-5: Revision & Formula Consolidation. Create concise formula sheets for each subject. Spend 30 minutes daily reviewing formulas and key concepts. Avoid learning new topics entirely at this stage. Study Schedule (Daily): 7-8 Hours. Morning (5:00-7:30 AM): Physics concepts + 30 PYQs. Break (7:30-8:30 AM): Breakfast & rest. Mid-morning (8:30-11:00): Chemistry concepts + 20 PYQs. Lunch (11:00-1:00 PM): Full break. Afternoon (1:00-3:30 PM): Maths concepts + 30 PYQs. Evening (3:30-5:00 PM): Mock test or error review. Night (7:00-9:00 PM): Formula revision & weak area focus. Strategic Approach for 110 Marks: Attempt only confident questions and avoid negative marking by skipping difficult questions. Do easy questions first—in the exam, attempt all basic-level questions before attempting medium or hard ones. Focus on quality over quantity as 30 well-practiced questions beat 100 random questions. Master NCERT concepts as most JEE questions test NCERT concepts applied smartly. April 2026 Session Advantage. If January doesn't deliver desired results, April gives you a second chance with 3+ months to prepare. Use January as a practice attempt to identify weak areas, then focus intensively on those in February-March. Realistic Timeline: January 2026 target is 95-110 marks (achievable with focused 50% syllabus), while April 2026 target is 120-130 marks (with complete syllabus + experience). Your reservation benefit means you need only approximately 90-105 marks to qualify and secure admission to quality engineering colleges. Stop comparing yourself to general category cutoffs. Most Importantly: Consistency beats perfection. Study 6 focused hours daily rather than 12 distracted hours. Your 110-mark target is realistic—execute this plan with discipline. All the BEST for Your JEE 2026!

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Sir maine 2024 me 12 pass Kiya aur kya 75% se kam rah gaye to kya mai 2025 me nios ka exam dekar 75%+ jee mains de sakta hu jabki maine abhi koi attempt nahi diye jee mains ke aur advance me kitne attempt milenge sir

Ans: Your query has already been replied to you. Please copy and paste the following link in your browser to read it again - https://gurus.rediff.com/hi/question/qdtl/career/given-12th-xam-first-2024-unable-score-75-percentage-gave/5244427

Good luck.
Follow me if you receive this reply.
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Sir namaste maine 2024 me12th pass Kiya aur 75% se kam marks aaye to kya 2026 me nios ka exam dekar jee mains de sakta hu aur jee advance me kitne attempt milenge

Ans: Your query has already been replied to you. Please copy and paste the following link in your browser to read it again - https://gurus.rediff.com/hi/question/qdtl/career/given-12th-xam-first-2024-unable-score-75-percentage-gave/5244427

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Asked by Anonymous - Dec 12, 2025

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Dear Sir/Madam, I am currently a 1st year UG student studying engineering in Sairam Engineering College, But there the lack of exposure and strict academics feels so rigid and I don't like it that. It's like they don't gaf about skills but just wants us to memorize things and score a good CGPA, the only skill they want is you to memorize things and pass, there's even special class for students who don't perform well in academics and it is compulsory for them to attend or else the student and his/her parents needs to face authorities who lashes out. My question is when did engineering became something that requires good academics instead of actual learning and skill set. In sairam they provides us a coding platform in which we need to gain the required points for each semester which is ridiculous cuz most of the students here just look at the solution to code instead of actual debugging. I am passionate about engineering so I want to learn and experiment things instead of just memorizing, so I actually consider dropping out and I want to give jee a try and maybe viteee , srmjeee But i heard some people say SRM may provide exposure but not that good in placements. I may not be excellent at studies but my marks are decent. So gimme some insights about SRM and recommend me other colleges/universities which are good at exposure

Ans: First — your frustration is valid

What you are experiencing at Sairam is not engineering, it is rote-based credential production.

“When did engineering become memorizing instead of learning?”

Sadly, this shift happened decades ago in most Tier-3 private colleges in India.

About “coding platforms & points” – your observation is sharp

You are absolutely right:

Mandatory coding points → students copy solutions

Copying ≠ learning

Debugging & thinking are missing

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The fact that you noticed this in 1st year already puts you ahead of 80% students.

Should you DROP OUT and prepare for JEE / VITEEE / SRMJEEE?

Although VIT/SRM is better than Sairam Engineering College, but you may face the same problem. You will not face this type of problem only in some top IITs, but getting seat in those IITs will be difficult.
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???? Strategy:

Stay enrolled (degree security)

Reduce emotional investment in college rules

Use:

GitHub

Open-source projects

Hackathons

Internships (remote)

Hardware / software self-projects

This way:

College = formality

Learning = self-driven

Risk = minimal

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Namaste sir , maine 2024 me 12 pass Kiya aur mai 75% nahi la paya to kya mai 2026 me nios exam dekar jee mains de sakta hu aur jee advance ke liye kitne attempt milenge

Ans: JEE Main ke liye 12th pass hona hi kaafi hai, 75% criteria sirf NIT / IIT / IIIT / GFTI admission ke liye hota hai.

NIOS ek valid board hai (CBSE ke barabar maana jata hai).

Agar aap 2026 me NIOS se 12th pass kar lete ho, to:

Aap 2026, 2027, 2028 me JEE Main de sakte ho.

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Hello My son will be completing his tenth this year and wish to appear for NEET. We reside at Andheri-Mumbai. Can you please suggest good coaching institutes for the same near by based on overall performance , teacher quality and process of coaching

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it will be very difficult for me to suggest on this.

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Mai bihar board se 10 or 12 kiya hu or jee main bhi diya mera cutoff clear nhi hua or 3 attempt khatam ho gya hai kya mai ab nios board se fir se 12 complete karke jee main or advanced de sakta hu koe problem hogi kya

Ans: Yes, you can complete 12th again from NIOS and appear for JEE Main, but JEE Advanced has age, attempt, and year-of-passing restrictions, so eligibility for JEE (Adv) may still be an issue.

Honest opinion & suggestion - Even after 3 failed trials, why are you running behind JEE? It would be better to appear for the state-level engineering examination. Get admission to your preferred college and branch. Complete your undergraduate degree. While pursuing UG, appear for GATE. Crack it. With a high score, you can get admission to PG @ IIT. The dream of IIT can be easily fulfilled via this route. There is no sense in appearing for JEE again, especially after completing 12th @ NIOS board. It is just a waste of time, money, and effort.

The final decision will be yours! Only I can suggest.

Good luck.
Follow me if you receive this reply.
Radheshyam

Mayank Chandel |2575 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 13, 2025

Question by Saroja - Dec 12, 2025Hindi

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My son has passed 12th board exam in the year 2024. Is he eligible to appear JEE Main in Jan or Apr 2027 ?

Ans: Hello Saroja
Student can appear JEE-Mains for three years starting from his 12th appeared year. So the answer for your is NO.

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IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 13, 2025

Asked by Anonymous - Oct 04, 2025Hindi

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Ans: I don't think there should be any problem. They may ask you to submit the affidavit if they feel so.
In the mean time you can get your aadhar updated as per your marksheet.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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