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ELSS Gains Are Tax-free

Capital gains taxation in ELSS

16-Jun-2009•Value Research

I have invested Rs 80,000 in an ELSS three years back. Now I want to redeem my investment. Please let me know whether the capital gain is taxable or not?
- Ranjeet Jha

Long-term capital gains from equity are exempt from tax. In order to qualify for long term-capital gains, the investment must be held for more than 12 months. That means any equity investment held for a period greater than 12 months will be tax-free.

ELSS funds are equity schemes bearing a compulsory lock-in period of three years. Therefore, your holding period in an ELSS will always be greater than 12 months and so your gains are not taxable.

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