If you heard whispers that the government was about to scrap the tax on profits from your stocks and mutual funds — it's not true. The government officially confirmed there's no such plan. The 12.5% tax on long-term equity gains above ₹1.25 lakh per year stays exactly as it is.
What this means for you
- If your SIP or stock profits exceed ₹1.25 lakh in a year, the amount above that gets taxed at 12.5% — that hasn't changed and won't change anytime soon.
- On a ₹2 lakh gain, you'd owe roughly ₹9,375 in tax — worth knowing before you hit redeem.
- Planning your exits around the ₹1.25 lakh limit each financial year is still one of the smartest legal ways to reduce your tax bill.
What you can do
- Before redeeming mutual funds or selling stocks, check your total gains for this financial year first — staying under ₹1.25 lakh keeps it tax-free.
- If you're close to the limit, consider spreading redemptions across two financial years to use the ₹1.25 lakh exemption twice.
Nothing changed today — but now you know exactly where you stand, which is the best place to plan from.
Grow with clarity 🌱