SIF Tax Calculator
Calculate exact LTCG, STCG, or slab-rate tax on Specialized Investment Fund returns. Free, India-specific, updated for FY 2025-26 rules.
✓ Qualifies as long-term (≥12 months)
Tax breakdown
Capital gain
+₹2,00,000
Category
LTCG (equity)
Effective rate
4.69%
Tax owed
₹9,375
Net after tax
₹11,90,625
LTCG calculation: max(gain − ₹1,25,000, 0) × 12.5%. The ₹1.25 lakh exemption is annual, across all equity holdings.
Tax rules at a glance
| SIF type | LTCG (≥12 mo) | STCG (<12 mo) |
|---|---|---|
| Equity-oriented (≥65% equity) | 12.5% above ₹1.25 lakh/year | 20% flat |
| Hybrid <65% equity | Slab rate | Slab rate |
| Debt / Active Asset Allocator | Slab rate | Slab rate |
Slab rate = your marginal income tax rate (5% / 20% / 30% + applicable surcharge and cess). Equity-orientation is determined by the SIF's own SEBI-disclosed asset-allocation mandate and actual portfolio composition over the holding period.
Frequently asked questions
- How are SIF returns taxed in India?
- SIF taxation follows the underlying portfolio composition, exactly like a mutual fund of the same category. Equity-oriented SIFs (>65% equity) qualify for equity taxation: 12.5% LTCG above ₹1.25 lakh after 12 months, 20% STCG before 12 months. Hybrid (35-65% equity) and debt-oriented SIFs are taxed at the investor's slab rate as per the post-April-2023 debt fund regime.
- What's the LTCG threshold for equity SIFs?
- ₹1.25 lakh per financial year, across all equity-oriented investments combined (mutual funds + SIFs + listed equities). LTCG above this threshold is taxed at 12.5%. The threshold applies to the full equity LTCG basket — not separately for SIFs and other equity funds.
- Are hybrid SIFs taxed at slab rates?
- Yes — hybrid SIFs that don't meet the 65% equity threshold are taxed as non-equity funds. Under the post-April-2023 regime, capital gains are added to the investor's annual income and taxed at the marginal slab rate (potentially 30%+ for HNI investors), regardless of holding period. This makes hybrid SIFs less tax-efficient than equity SIFs for long-term wealth.
- What about STT and other transaction taxes?
- Securities Transaction Tax (STT) is levied at the AMC level on intra-fund equity trades and is built into the NAV — not paid separately by the investor. There is no separate STT on SIF unit purchases or redemptions (unlike direct stock trading). Stamp duty of 0.005% applies on initial purchase only.
- Can I use indexation on SIF gains?
- No. The Union Budget 2024-25 removed indexation benefit for all mutual fund and SIF debt/hybrid units. All gains are now taxed at slab rate (for non-equity) or at flat 12.5% LTCG / 20% STCG (for equity-oriented). Indexation is no longer available for any SIF category.
- How do I optimize tax on SIF redemption?
- Three levers: (1) hold equity SIFs for at least 12 months to qualify for LTCG at 12.5% instead of STCG at 20%; (2) stagger redemptions across financial years to maximise the ₹1.25 lakh annual LTCG exemption; (3) prefer Direct plans which compound at lower TER, leaving more capital invested. For HNI investors with substantial SIF holdings, consult a tax advisor before any redemption above ₹50 lakh.
Calculations are illustrative under current tax rules (FY 2025-26). Actual tax liability depends on your full income, deductions, and surcharge applicability. Consult a chartered accountant before any significant SIF redemption.