My ELSS lock-in got over a month ago. What will be the capital gain tax if I redeem the units now?
- Joby John
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 a year. That means any equity investment held for a period greater than a year will be tax-free. As ELSS funds are equity schemes bearing a compulsory lock-in period of three years; your holding period in them will always be greater than a year, your gains will not be taxable.
This article was originally published on March 17, 2011.
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