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Should I Worry About LTCG on Partial Withdrawal from Axis Bluechip Fund?

T S Khurana

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Tax Expert - Answered on Dec 31, 2024

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.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

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
Vishal Question by Vishal on Dec 14, 2024Hindi
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Money

I was doing SIP of Rs 2000 in Axis Bluechip fund from Jan 2020 to Jan 2023. The amount has now grown to 2.2 Lakh. If I make a partial withdrawl of Rs 1 Lakh, how will the LTCG be calculated?

Ans: 01. Kindly generate or get Capital Gain statement from the company in which you have invested the amount. It shall show the LTCG, based on the period of your investment. LTCG rate is 12.50%.
02. Since you are withdrawing only Rs.1.00. lakh only & LTCG is exempt up to Rs.1.25 lakhs, there shall be no Income Tax in this case (F/Y 2024.25).
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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