Net Corpus After Tax
--
SIP Calculator Tax Adjusted
This SIP Calculator Tax Adjusted accounts for LTCG tax on your equity mutual fund returns — enter your monthly investment, expected annual return, investment period, and LTCG exemption per year to project your net corpus after tax, gross corpus before tax, LTCG tax payable, and total invested, all updating live as you move the sliders. The donut chart splits your final corpus three ways — net take-home, tax payable, and your contributions — so you can see in rupees how LTCG tax reduces your take-home returns from a systematic investment plan before committing to a monthly amount. For more related tools, see the sip goal calculator.
Results
Gross Corpus Before Tax
--
LTCG Tax Payable
--
Total Invested
--
Tax Impact on SIP Returns
How LTCG Tax Applies to SIP Returns
When you redeem equity mutual fund units held for more than 12 months in India, the gains are classified as Long-Term Capital Gains (LTCG) and taxed at 12.5% (post Budget 2024, without indexation) on the amount exceeding ₹1 lakh per financial year. For a systematic investment plan, tax is calculated separately on each batch of units purchased — units bought 12+ months before redemption attract LTCG, while more recently purchased units attract Short-Term Capital Gains (STCG) at your slab rate. The SIP after tax returns calculator simplifies this to a whole-portfolio basis, using your annual exemption amount to estimate the approximate LTCG tax payable on redemption of the full SIP corpus.
The SIP tax deduction calculator above uses 12.5% LTCG tax rate on gains above your cumulative exemption. The LTCG exemption per year slider defaults to ₹1 lakh — the annual exemption under current rules — but you can model scenarios where you use the exemption for other gains by reducing it, or explore a partial exemption scenario by adjusting accordingly. Also explore the sip calculator inflation adjusted for a related calculation.
How to Use the SIP Tax Calculator
The LTCG tax on SIP calculator needs four inputs to compute your post-tax corpus:
- Monthly Investment (₹): Your monthly SIP amount in an equity mutual fund.
- Expected Annual Return (%): The pre-tax CAGR you expect from the fund.
- Investment Period (Years): How long you plan to stay invested before redeeming the full corpus.
- LTCG Exemption per Year (₹): The annual LTCG exemption you can apply to this SIP. Under current rules, ₹1 lakh per year is available for equity instruments. If you already use the exemption for other equity gains, reduce this value accordingly.
The calculator multiplies the annual exemption by the investment period to get a total lifetime exemption, subtracts it from gross returns, and applies 12.5% tax on the remaining taxable gains. The result is your net corpus after tax, along with gross corpus before tax, LTCG tax payable, and total invested. Also explore the sip calculator with expense ratio for a related calculation.
Minimising Tax on Your Systematic Investment Plan
The most effective legal strategy for reducing LTCG tax on a systematic investment plan is systematic withdrawal — redeeming units annually to harvest up to ₹1 lakh in gains tax-free each year, then reinvesting the redeemed amount. This strategy, sometimes called LTCG harvesting, ensures you never accumulate more than ₹1 lakh in taxable gains in any single year, meaning you could theoretically pay zero LTCG tax even on a large SIP corpus over time. Other tax-efficient approaches include:
| Strategy | How it reduces LTCG tax on SIP |
|---|---|
| Annual LTCG harvesting | Redeem and reinvest up to ₹1 lakh gain each year tax-free |
| Joint holding | Each holder gets a separate ₹1 lakh exemption |
| ELSS SIP (80C) | SIP deductions reduce taxable income up to ₹1.5 lakh/year |
| Direct plan selection | Lower expense ratio means higher pre-tax returns to partially offset tax |
Use the SIP tax calculator above to find the gross-to-net corpus impact for your specific situation, then model how annual LTCG harvesting over the full investment period would reduce the LTCG tax payable figure compared to a single lump redemption at maturity.
Frequently Asked Questions
What is the current LTCG tax rate on equity SIP in India?
As of Budget 2024, Long-Term Capital Gains on equity mutual fund units held for more than 12 months are taxed at 12.5% without indexation, on gains exceeding ₹1 lakh per financial year. Before Budget 2024, the LTCG tax rate was 10% with a ₹1 lakh exemption. Short-Term Capital Gains (units held less than 12 months) are taxed at 20% under the new rates. The SIP tax adjusted calculator above uses the 12.5% LTCG rate applicable since July 23, 2024.
Does every SIP instalment attract LTCG tax separately?
Yes. In a systematic investment plan, each monthly instalment is treated as a separate investment for LTCG tax purposes — the 12-month holding period clock starts separately for each instalment's units. When you redeem the full SIP corpus, the gains on instalments purchased more than 12 months ago are LTCG, and gains on instalments purchased within the last 12 months are STCG. The SIP after tax returns calculator simplifies this by treating all gains as LTCG, which is a reasonable approximation for SIPs held well beyond 12 months.
How does the annual LTCG exemption apply to a SIP?
The ₹1 lakh annual LTCG exemption applies per taxpayer per financial year across all equity instruments combined — not per fund or per SIP. If you hold multiple equity SIPs and redeem across them in the same year, the ₹1 lakh exemption covers combined gains from all redemptions. The SIP tax calculator uses this exemption on a per-year basis (total exemption = exemption per year × investment period) as a simplification for whole-horizon tax estimation. For precise tax calculation on an actual redemption, consult a CA or use your fund's capital gains statement.
What is LTCG tax harvesting and how does it reduce SIP tax?
LTCG tax harvesting in a systematic investment plan involves redeeming equity mutual fund units annually to realise up to ₹1 lakh in long-term gains tax-free, then immediately reinvesting the proceeds. By harvesting gains each year, you reset your cost basis to a higher level, reducing the taxable gain when you eventually fully redeem the corpus. If done consistently over a 20–30 year SIP horizon, LTCG harvesting can substantially reduce or even eliminate the LTCG tax payable at maturity — making it one of the most powerful tax planning tools available to systematic investment plan investors without requiring any change to the investment strategy.