Ch.8 · Dividend and STT Taxation · medium
What is the tax treatment of ELSS fund gains at the end of the 3-year lock-in?
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EXPLANATION
ELSS is an equity-oriented scheme, so the same capital gains tax rules apply as for other equity funds. After the 3-year lock-in, LTCG above ₹1.25 lakh is taxed at 12.5%. While ELSS qualifies for Section 80C deduction (up to ₹1.5 lakh) at investment, gains at redemption are not exempt — investors must pay LTCG on gains above the annual exemption.
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