Every SIP is a fresh investment | Value Research Every SIP installment is treated as a fresh investment and must complete 12 months for its gains to be tax-free
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Every SIP is a fresh investment

Every SIP installment is treated as a fresh investment and must complete 12 months for its gains to be tax-free

24-Sep-2015 •Research Desk

I have started a Systematic Investment Plan (SIP) of ₹5,000 in a particular fund from September 1, 2014. And I want to start a Systematic Transfer Plan (STP) of ₹5,000 to another scheme of the same AMC from September 20, 2015. Does this attract short term capital gains tax?
- Devaraju Rao

Investments in equity mutual fund schemes held over 12 months qualify for long-term capital gains tax. This is applicable to every installment in an SIP. Since the first installment of your SIP has completed twelve months, you don't have to pay any tax on on your STP.

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