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.