https://v2.webnotes.in/categories/stp/Recent content in STP on WebNotesHugoen-INSun, 17 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-setup-ppfas-stp/Sun, 17 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-setup-ppfas-stp/<p>A Systematic Transfer Plan (<a href="https://v2.webnotes.in/stp-mutual-fund/">STP</a> ) is the automated form of <a href="https://v2.webnotes.in/how-to-switch-ppfas-schemes/">switching</a> : rather than running one switch, you register a cadence (typically monthly, for a fixed number of installments) and the same source-to-destination switch repeats automatically. The two common PPFAS use cases are <strong>Liquid-to-PPFCF</strong> (you have a lump sum and want to phase it into equity over several months instead of going all-in at one NAV) and <strong>PPFCF-to-Liquid</strong> (you have a known cash need a year out and want to harvest equity in measured steps to reduce timing risk on the exit). Each installment is treated as a switch under tax law: the source leg crystallises capital gains exactly as a switch or redemption would, with the same Section 112A or 111A treatment for equity-oriented sources and slab-rate STCG for debt-oriented sources acquired post-Finance Act 2023.</p>