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Systematic Aggregation

SIP Investments & Fifo Taxation

A granular blueprint for SIP taxation. Avoid the disastrous mistake of selling SIPs blindly before 1 year, and master the First-In-First-Out mechanical execution needed for tax optimization.

SIP Return Calculator

SIP Technical Architecture

Instrument Concept	Core Principle	Tax Perspective
FIFO Method	Selling Logic	First In, First Out. The earliest SIP installment you made is the first one sold during redemption.
STCG Threshold	Sale < 1 Year	Each specific SIP installment must complete 1 year to avoid the brutal 20% Short Term tax.
LTCG Limit	Sale > 1 Year	Every SIP completing 1 year qualifies for identical 12.5% taxation over ₹1.25L aggregated gains.
Step-Up SIP	Wealth Multiplication	Automatically increasing SIP amount yearly by 10% to combat inflation and salary hikes.

How to Protect Your SIPs from Short-Term Tax

The Income Tax Act views every single SIP installment as a completely independent purchase. Follow this execution strategy to bypass the 20% STCG trap:

Step 1: The Rolling Horizon Filter - If you started an SIP in Jan 2023, by Dec 2024, only your 2023 SIPs have completed 1 year. The ones from Jan-Dec 2024 have not. This is called a rolling maturity curve.
Step 2: Understand FIFO Execution - The government mandates FIFO (First-In, First-Out). When you hit "Withdraw ₹5,00,000", the AMC legally sells your oldest units first (from Jan 2023 onwards).
Step 3: Calculating STCG Exposure - If your withdrawal amount forces the AMC to sell units purchased within the last 12 months, the profit *only* on those specific recent units is dragged into the massive 20% STCG slab.
Step 4: Executing Tax Harvesting - Before March 31st each year, sell and immediately buy back units that have crossed exactly 1 year. This perfectly resets their purchase price, allowing you to absorb the ₹1.25 Lakh tax-free LTCG limit every year permanently.
Step 5: Systematic Withdrawal Plan (SWP) Trap - Retirees love SWPs for monthly income. But an SWP placed too early will trigger STCG on recent tranches. Allow the corpus to rest for 12 months after the *final* SIP before executing an SWP.

Capital Gains Execution Matrix

SIP Tranche FIFO Analysis

Capital Gains Tax Statement Parsing

Rupee Cost Averaging tax math

STCG avoidance scheduling

Systematic Withdrawal Plan (SWP) strategy

Sec 112A / 111A classification across years

Portfolio churn taxation audit

Tax Harvesting execution

Required Reconciliations

Broker Tax P&L Statement

Consolidated Account Statement (CAS)

Statement of SIP debit mandates

Previous year filed ITRs

Why CAs Reconcile SIP Statements

Notice Neutrality

Accurate reporting of 150+ SIP tranches precisely aligning with SEBI reporting to AIS.

Alpha Extraction

Expert execution of tax harvesting, creating artificial losses to offset real gains.

Schedule CG Mastery

The portal requires date-wise entry of grand-fathered units. Our automation prevents data-entry burnout.

Sold SIP Units Recently?

If you dragged short-term units into your redemption, your tax has spiked. Calculate the damage instantly with an expert.