{"id":9256,"date":"2018-07-24T09:49:08","date_gmt":"2018-07-24T04:19:08","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=9256"},"modified":"2018-10-08T10:45:50","modified_gmt":"2018-10-08T05:15:50","slug":"tax-on-sip","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/tax-on-sip\/","title":{"rendered":"How to Calculate Tax on SIP in Mutual Funds?"},"content":{"rendered":"
SIP or Systematic Invest Plan in Mutual Funds have become quite popular among investors<\/strong>. However, most people are not clear about how their SIP would be taxed on redemption.<\/p>\n To answer the taxation aspect, we need to understand what SIP is?<\/strong><\/p>\n SIP is buying of mutual funds every month (or daily) with a fixed amount.<\/strong> The only difference is the entire process of investment has been automated for a period of time. Each SIP installment for all practical purpose is like a fresh investment in mutual fund. So, on redemption the capital gains are calculated based on investment in each SIP installment. We explain this by an example:<\/p>\n Suppose I have invested in IDFC Premier Equity Direct-G using SIP of Rs 5,000 from January to December 2016 on 1st of every month (total 12 installments).<\/strong><\/p>\n At the end of SIP total number of units was 802 units as shown in table below:<\/p>\n Also Read:<\/strong>\u00a023 most common Investments and how they are Taxed?<\/a><\/p><\/blockquote>\n Now we take different scenarios and calculate Long Term and Short-Term Capital Gains\/Loss.<\/strong><\/p>\n\n\n
\n SIP Date<\/strong><\/td>\n SIP Amount<\/strong><\/td>\n Quantity Purchased<\/strong><\/td>\n Purchase NAV<\/strong><\/td>\n<\/tr>\n \n 1-Jan-16<\/td>\n 5,000<\/td>\n 66.84<\/td>\n 74.81<\/td>\n<\/tr>\n \n 1-Feb-16<\/td>\n 5,000<\/td>\n 71.43<\/td>\n 70.00<\/td>\n<\/tr>\n \n 1-Mar-16<\/td>\n 5,000<\/td>\n 75.98<\/td>\n 65.80<\/td>\n<\/tr>\n \n 1-Apr-16<\/td>\n 5,000<\/td>\n 71.55<\/td>\n 69.89<\/td>\n<\/tr>\n \n 2-May-16<\/td>\n 5,000<\/td>\n 68.93<\/td>\n 72.54<\/td>\n<\/tr>\n \n 1-Jun-16<\/td>\n 5,000<\/td>\n 67.33<\/td>\n 74.26<\/td>\n<\/tr>\n \n 1-Jul-16<\/td>\n 5,000<\/td>\n 65.57<\/td>\n 76.26<\/td>\n<\/tr>\n \n 1-Aug-16<\/td>\n 5,000<\/td>\n 62.19<\/td>\n 80.40<\/td>\n<\/tr>\n \n 1-Sep-16<\/td>\n 5,000<\/td>\n 62.84<\/td>\n 79.56<\/td>\n<\/tr>\n \n 3-Oct-16<\/td>\n 5,000<\/td>\n 61.30<\/td>\n 81.56<\/td>\n<\/tr>\n \n 1-Nov-16<\/td>\n 5,000<\/td>\n 61.33<\/td>\n 81.53<\/td>\n<\/tr>\n \n 1-Dec-16<\/td>\n 5,000<\/td>\n 66.97<\/td>\n 74.66<\/td>\n<\/tr>\n \n Total<\/strong><\/td>\n 60,000<\/strong><\/td>\n 802.25<\/strong><\/td>\n \u00a0<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n