India Mutual Fund 12.5% LTCG & SIP Tax Calculator (2026 Budget)
Simulate exact in-hand wealth after India's revised 12.5% Long-Term Capital Gains (LTCG) with ₹1.25 Lakh annual exemption and 20% STCG tax rates.
SIP & Investment Inputs
Section 112APost-Tax Corpus & Capital Gains (₹)
12.5% LTCG AppliedUnderstanding India's 2026 Union Budget Capital Gains Tax Slabs (Section 112A & 111A)
Revised 12.5% LTCG Slab
Effective with the Union Budget, Long-Term Capital Gains (LTCG) on equity mutual funds held for >12 months are taxed at a flat 12.5% (up from 10%). However, the annual tax-free exemption threshold was increased from ₹1,00,000 to ₹1,25,000 per financial year.
Annual Tax Harvesting Alpha
Savvy Indian retail investors legally save lakhs in taxes by redeeming and immediately reinvesting up to ₹1,25,000 of profit each March before the financial year closes. This resets your cost basis upwards, eliminating future 12.5% tax drag.
SWP vs Dividend Distribution
For retirement cash flows, Systematic Withdrawal Plans (SWP) remain far more tax-efficient than IDCW (Dividend) options because each monthly SWP withdrawal is treated primarily as return of capital, with only the small pro-rata profit subject to 12.5% LTCG.