How are my index fund gains taxed when I sell, and does each SIP count separately?
The short answer
For an equity index fund in India, gains are taxed only when you actually sell, and how long you held decides the rate. Sell within a year and it is short-term; hold longer and it is long-term, which has historically enjoyed a lower rate plus an annual exemption on part of the gains. The catch with a SIP is that every installment is its own purchase with its own holding date, and sales are usually matched oldest-first, so your earliest units may qualify as long-term while recent ones do not. This means a single redemption can be part short-term and part long-term. The exact rates, the exemption limit, and the holding thresholds change from budget to budget, so do not plan around a specific number here. Confirm the current capital gains rules with a CA or a qualified advisor before you sell.
A curated summary to orient you, not advice. The resources below are the real value.
Go deeper, your way
3 hand-picked resources, 3 India-specific, 3 link-checked. Pick how you want to dig in.
📄 Article
✓ Link checkedIndiaFreeIntermediate
Why we picked it
The India reference on short vs long term capital gains, holding periods, and rates for equity, funds, and property, so you know the tax before you sell.
Why we picked it
The market regulator own free investor-education portal: unbiased basics on investing, mutual funds, and avoiding scams, with nothing to sell you.
