======================================================================================================================== TAX CALCULATION SUMMARY LTCG Tax @ 12.5% with ₹1.25 Lakh Annual Exemption (November 2010 - February 2026) ======================================================================================================================== INVESTMENT OVERVIEW: Initial Investment: ₹50,00,000 (1 Nov 2010) Total Withdrawn (Gross): ₹42,75,000 (171 months) Current Portfolio Value: ₹3,01,74,950 ======================================================================================================================== TAX CALCULATION ======================================================================================================================== CAPITAL GAINS BREAKDOWN: Total Capital Gains: ₹35,45,317 Less: Exemption Used (₹1.25L × 17 years): ₹15,56,473 Taxable Capital Gains: ₹19,88,844 TAX CALCULATION: LTCG Tax @ 12.5%: ₹2,48,605 Effective Tax Rate: 7.01% (on total gains) Tax Savings from Exemption: ₹1,94,559 UNITS SOLD FOR WITHDRAWALS: Bucket 1 (Axis Liquid): 2,250.77 units (original: 1,140.24) • More units sold than initial because of refills from Bucket 2 Bucket 2 (ICICI Eq&Debt): 15,740.65 units (original: 27,287.99) • Used for refilling Bucket 1 twice + direct redemptions Bucket 3 (DSP Smallcap): 0.00 units (original: 137,068.92) • Never touched! Pure growth corpus ======================================================================================================================== FINAL POSITION (AFTER TAX) ======================================================================================================================== WITHDRAWALS: Gross Amount Withdrawn: ₹42,75,000 Less: LTCG Tax Paid: ₹2,48,605 Net Amount in Hand: ₹40,26,395 CURRENT PORTFOLIO: Portfolio Value: ₹3,01,74,950 TOTAL WEALTH CREATED: Portfolio + Net Withdrawn: ₹3,42,01,344 Less: Initial Investment: ₹50,00,000 Net Profit (After Tax): ₹2,92,01,344 Absolute Return: 584.03% ======================================================================================================================== IMPACT OF TAX ======================================================================================================================== BEFORE TAX vs AFTER TAX: Total Corpus (Before Tax): ₹3,44,49,950 Total Corpus (After Tax): ₹3,42,01,344 Tax Paid: ₹2,48,605 Impact on Returns: 0.72% only! Return Before Tax: 588.99% Return After Tax: 584.03% Difference: 4.96% points ======================================================================================================================== YEAR-WISE TAX PAYMENT ======================================================================================================================== Year | Capital Gain | Exemption Used | Taxable Gain | Tax Paid @12.5% | Cumulative Tax ---------------------------------------------------------------------------------------------------- 2011 | ₹ 2,162 | ₹ 2,162 | ₹ 0 | ₹ 0 | ₹ 0 2012 | ₹ 39,632 | ₹ 39,632 | ₹ 0 | ₹ 0 | ₹ 0 2013 | ₹ 61,428 | ₹ 61,428 | ₹ 0 | ₹ 0 | ₹ 0 2014 | ₹ 81,809 | ₹ 81,809 | ₹ 0 | ₹ 0 | ₹ 0 2015 | ₹ 99,519 | ₹ 99,519 | ₹ 0 | ₹ 0 | ₹ 0 2016 | ₹ 114,480 | ₹ 114,480 | ₹ 0 | ₹ 0 | ₹ 0 2017 | ₹ 845,718 | ₹ 125,000 | ₹ 720,718 | ₹ 90,090 | ₹ 90,090 2018 | ₹ 138,032 | ₹ 125,000 | ₹ 13,032 | ₹ 1,629 | ₹ 91,719 2019 | ₹ 149,161 | ₹ 125,000 | ₹ 24,161 | ₹ 3,020 | ₹ 94,739 2020 | ₹ 157,223 | ₹ 125,000 | ₹ 32,223 | ₹ 4,028 | ₹ 98,767 2021 | ₹ 162,021 | ₹ 125,000 | ₹ 37,021 | ₹ 4,628 | ₹ 103,394 2022 | ₹ 1,112,792 | ₹ 125,000 | ₹ 987,792 | ₹ 123,474 | ₹ 226,868 2023 | ₹ 174,693 | ₹ 125,000 | ₹ 49,693 | ₹ 6,212 | ₹ 233,080 2024 | ₹ 183,218 | ₹ 125,000 | ₹ 58,218 | ₹ 7,277 | ₹ 240,357 2025 | ₹ 190,985 | ₹ 125,000 | ₹ 65,985 | ₹ 8,248 | ₹ 248,605 2026 | ₹ 32,442 | ₹ 32,442 | ₹ 0 | ₹ 0 | ₹ 248,605 ======================================================================================================================== KEY OBSERVATIONS ======================================================================================================================== 1. Tax Impact: Only 0.72% impact on total returns - Very efficient! 2. Exemption Benefit: Saved ₹1,94,559 in taxes due to ₹1.25L annual exemption 3. Effective Tax Rate: 7.01% instead of 12.5% (due to exemptions) 4. Highest Tax Year: 2022 (₹1,23,474) - Due to Bucket 2→Bucket 1 refill 5. Bucket 3 Untouched: DSP Smallcap grew 10.7x without any tax liability! 6. Strategic Benefit: Withdrawing from Bucket 1 (liquid) first minimized tax 7. LTCG Advantage: If STCG (30%), tax would have been ₹10.64 lakh instead! ========================================================================================================================