Tax on sale of Equity Investments made through Systematic Investment Plan?

In the case of Systematic Investment Plan installments in an equity fund, each installment is treated as a separate purchase, and any unit would have to be held for more than 12 months to qualify as long-term.

Therefore, if an investor redeems all units, only gains from those units that have been held for more than 12 months will qualify as long-term capital gains.

The gains from the remaining units will be short-term capital gains.

Lets consider this example as in this example which is going to be Long term capital Gains and which is going to be short term capital gains if investor decided to sell all units on 10th April 2012

Here in this example SIP is started from 14th July 2008 and it on going sip, if the investor decided to redeem all units then

Units from 14th July 2008 to 15th March 2011 is considered as Long Term Capital Gain/loss

and units from 15th April 2011 to 14th March 2012 is considered as short term capital gain/loss

Tax Treatment of Long Term Capital Gains from Equity Investment

Equity oriented funds means having at least 65% of assets in equity

Long-term capital gain refers to gains made on redeeming units held for more than 12 months. Currently as per tax laws, no tax is payable on the redemption or transfer of these units, provided such transaction is chargeable to the securities transaction tax. (STT)

Tax Treatment of Short Term  Capital Gains From Equity Investment

If the units are held for less than 12 months, the gain is called short-term capital gain. In the case of equity-oriented funds, short-term capital gains arising from the redemption of units of an equity-oriented fund will be taxed at 15 per cent, provided securities transaction tax has been charged.