LTCG on switch in Mutual Funds IDCW option to Growth option in ELSS

Income Tax
3

Hi @vasudevhari ,

So, switching your ELSS IDCW plan to a Growth plan will have the following implications:

  1. Capital Gains Tax – The switch is considered a redemption, so capital gains tax will apply based on your holding period.
  2. Fresh Lock-in Period – Since the growth plan is a new investment in ELSS fund therefore a fresh 3-year lock-in period will restart.