Ch.9 · Systematic Transactions — SIP, SWP, STP · hard
An investor starts a monthly SIP of ₹5,000 in an equity fund on the 1st of each month for 3 years and then redeems all units after 3 years. For which SIP instalments will the gain qualify as LTCG?
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EXPLANATION
FIFO applies. At redemption, units from the earliest instalments (held over 12 months) attract LTCG at 12.5%. Units from the last 12 months of SIPs attract STCG at 20%. Each batch is evaluated independently.
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