Mutual fund tax harvesting calculator

How the calculation works

• Your lots: each SIP instalment is a separate purchase. We buy units at the first NAV of each month from your start month (actual AMFI NAVs), add any one-off purchases, and remove earlier redemptions oldest-first, as fund houses do.
• What's sellable: a redemption always takes your oldest units first, so we can only sell from the oldest end, and only while those units are held more than 12 months (and, for ELSS, more than 3 years).
• Gain on each lot: today's value minus cost. Units bought before 1 February 2018 use the grandfathered cost under Section 112A (the higher of your cost and the 31 January 2018 NAV, capped at today's NAV).
• The plan: we book gains up to the tax-free room you have left, starting with the funds that give the most gain per rupee sold, so you redeem as little as possible.
• Gains already booked: long-term gains from redemptions you enter that fall in this financial year are counted automatically; add anything else (shares, other funds) in the box.

Before you redeem

• Check the exit load. Most equity funds charge one only in the first year, but some charge it for up to two years or more.
• If you reinvest, stamp duty of 0.005% applies to the new purchase, and the new units start a fresh 12-month holding period.
• Short-term gains (units held 12 months or less) are taxed at 20% with no exemption, so never sell more than the plan shows.
• Your SIP date matters slightly: we use the first NAV of each month. Compare the units shown with your statement.

Questions

What is tax harvesting in mutual funds?

Each financial year, the first Rs 1,25,000 of long-term capital gains on equity mutual funds and listed shares is tax-free. Tax harvesting means selling enough long-held units to book gains up to that limit, then reinvesting. The gain is booked tax-free and your purchase price resets higher, so less gain is taxed when you finally sell.

How much tax does it save?

Up to Rs 15,625 a year (12.5% of Rs 1,25,000) for each person, paid later rather than never if you don't harvest. Repeated every year, the saving adds up over a long SIP.

Which units can I sell?

Only units held for more than 12 months give long-term gains, and mutual funds redeem your oldest units first. ELSS units can't be sold until 3 years after each purchase. The calculator follows both rules.

Do gains from shares count towards the Rs 1.25 lakh?

Yes. The exemption is shared between equity mutual funds and listed shares. Enter long-term gains you've already booked this year from shares or funds you haven't listed, so the calculator leaves room only for what's left.

When should I do it?

Any time before the financial year ends on 31 March 2027. Place the redemption a few working days early so it is processed at a NAV dated within the year. Many investors do it in February or March, once they know their other gains.

Is my data sent anywhere?

No. Everything runs in your browser using published NAVs; nothing you type is uploaded or stored.

Tax rules as in force since 23 July 2024: 12.5% LTCG above ₹1,25,000 per financial year, 20% STCG, Section 112A grandfathering. NAVs as of 4 Oct 2026. This is a calculation, not tax advice; sipcalculatorhub.com is not a SEBI-registered adviser or a tax practitioner. Methodology.