What if someone stops paying SIP installments after four years and redeem after one year? What will be tax implications If invested in an equity scheme?
- Sunny Guleria
If you have stopped your Systematic Investment Plan (SIP) in an equity scheme after four years and sold your investments a year later, you don't have to pay any tax on your capital gains. This is because long-term capital gains are tax-free on equity investments held over a year. However, you should make sure that the last SIP instalment has completed a year before selling to qualify for long-term capital gains tax.
This article was originally published on October 14, 2015.
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