How are long term capital gains calculated for a SIP investment

POSTED BY rajat ON February 21, 2011 6:17 pm ONE COMMENT

I want to know how are long term capital gains calculated for a SIP investment. e.g. suppose i start a SIP in a equity mf on jan 2010 and my last sip instalment ends on jan 2012, in this case if i sell my entire holding in feb 2012, will i accrue the benefit of long term capital tax gain?

Also, what if I sold all my holdings in jan 2011, exactly after completion of 12 months of SIP.?

I am confused if i need to spend more than 12 months after the date of last SIP to gain the benefit of long term gains.

One reply on this article “How are long term capital gains calculated for a SIP investment”

  1. jitendra solanki says:
    February 21, 2011 at 7:09 pm

    rajat,

    In an SIP every monthly investment is considered a fresh investment.So till your SIP investments in Jan 2011will fetch long term capital gains if you sell in Feb 2012.The rest from Feb 2011 to Jan 2012 will have short term capital gains.

    If you sell in Jan 2011 all SIP investments will fall under short term gains.

    Yes your last SIP installment has to complete 12 months to give you long term capital gain benefit.

    Reply

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