Post Tax SIP Returns Calculator - Calculate Real Mutual Fund Gains

Understanding Post Tax SIP Returns

While SIP Calculators show you the potential future value of your investments, they often ignore a crucial component: Taxes. In India, returns from Equity Mutual Funds are subject to Capital Gains Tax.

This Post Tax SIP Calculator helps you estimate the actual "in-hand" amount you will receive after the government takes its share. It accounts for both Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG) based on the latest tax slabs.

How Mutual Fund Taxation Works (2025)

Taxation depends on the holding period of your units:

Short Term Capital Gains (STCG): If you sell units within 1 year of purchase, the profit is taxed at a flat rate of 20%.
Long Term Capital Gains (LTCG): If you sell units after 1 year, profits up to ₹1.25 Lakh in a financial year are tax-free. Any profit above ₹1.25 Lakh is taxed at 12.5%.

Note on SIP Taxation: In an SIP, each installment purchases units at a different date. The "First-In-First-Out" (FIFO) rule applies. When you redeem your entire corpus after say, 5 years, the units bought in the very last year will still be considered Short Term, while older units will be Long Term.

Why Use This Calculator?

Many investors plan for a goal, say ₹50 Lakhs for a child's education. A normal calculator might show you reaching ₹50 Lakhs, but after taxes, you might only get ₹46 Lakhs, falling short of your goal. By using this calculator, you can plan for the Net Target Amount.

FAQs

1. Does the calculator consider the ₹1.25 Lakh exemption?

Yes, this calculator automatically deducts the ₹1.25 Lakh exemption limit for LTCG calculations to give you a realistic tax estimate.

2. Is the tax deducted automatically by the mutual fund house?

No, mutual fund houses do not deduct TDS (Tax Deducted at Source) for resident Indians. You receive the full amount and must calculate and pay the tax yourself when filing your ITR.

3. How are SIP units redeemed?

Units are always redeemed on a FIFO (First-In-First-Out) basis. The units you bought first are sold first. This is generally beneficial as older units qualify for LTCG sooner.