WobblyRaccoon

How are gains from SWP taxed?

I had invested in a SIP (equity) for 3 years and am withdrawing the investment via a 12 month SWP spread across two financial years.

This helps me ensure that the capital gains do not exceed 1L in any of the financial years.

Assuming a scenario where the capital gains exceed 1L, how will they be taxed? And if I need to claim an indexation benefit, how do I do it?

17mo ago

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SnoozyWaffle

There is no indexation benefit for equity capital gains.... beyond 1L, you will be taxed 10%

So, if you're LTCG is 1.2L, you will have to pay tax of 2k (10% on 20k that is beyond 1L)....

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