What tax does the SIP calculator leave off an equity-fund gain?

The screen never subtracts tax

The SIP calculator compounds the instalment at the rate you type. ₹10,000 for 10 years at an assumed 12% is about ₹23,23,391. You paid in ₹12,00,000. The ₹11,23,391 difference is not a tax computation, and it is not money in the bank.

The income-tax calculator compares salary under the old and new regimes. It has no capital-gains line. Typing this gain into the salary box treats it as salary, which it is not.

What the Act says about equity-oriented fund units

Under section 2(101) of the Income-tax Act, 2025, a unit of an equity-oriented fund held for not more than twelve months is a short-term capital asset. Longer than that, it is long-term.

Section 196 taxes short-term gains on an equity-oriented fund unit, where the sale is chargeable to securities transaction tax, at 20%. Section 198 taxes long-term gains on such a unit, where STT was paid on the transfer, at 12.5% of the gains exceeding ₹1,25,000. These are the rates in the Act as amended by the Finance Act, 2026. This page does not add surcharge or cess on top of them.

• Twelve months is the short-term line for these units, from section 2(101).
• Short-term rate in section 196: 20%, where STT applies on the sale.
• Long-term rate in section 198: 12.5% above ₹1,25,000, where the STT condition is met.
• A debt fund is not this section.

The sketch assumes a cleaner sale than a SIP gives you

₹11,23,391 minus ₹1,25,000 is ₹9,98,391. Twelve and a half percent of that is ₹1,24,799. ₹23,23,391 minus ₹1,24,799 is ₹21,98,592. That is the second bar. It assumes every unit has crossed twelve months and the whole gain is realised in one tax year.

A SIP that is still running has recent units. Those units are short-term if sold within twelve months, and section 196’s 20% is not section 198’s 12.5%. Selling only the oldest units is a real choice, and this page does not identify them. The ₹1,24,799 is an upper-bound illustration of the long-term rate, not a return you can file.

Use the screen as the pre-tax picture only

For Tax Year 2026-27, read ₹23,23,391 as the projection before tax and before any exit load. If you need the spendable amount, the long-term sketch above is the start of the question, not the answer, because of the new units and because surcharge and cess are not in it.

Section 198(7) computes the rebate on the tax after removing the tax on these long-term gains. The familiar salary rebate is not a switch that wipes the gain. This page does not recompute that interaction.

Worked example: the long-term sketch, not a tax return

SIP at an assumed 12%. The tax line applies only if the entire gain is long-term equity-oriented-fund gain in one year and section 198 applies. No surcharge, no cess, no short-term units.

₹21,98,592 is the screen minus that sketch. It is not the redemption proceeds of a real SIP, because some units will still be inside twelve months.

Sources

• FinanceChacha SIP calculator
• FinanceChacha income-tax calculator
• Income-tax Act, 2025, as amended by the Finance Act, 2026