How to apply the grandfathering rule for LTCG on pre-2018 mutual fund holdings

Tue, 19 May 2026 00:00:00 +0000

The grandfathering rule for LTCG on pre-2018 equity mutual fund holdings was introduced in Finance Act 2018 alongside the new LTCG tax. It protects investors from being taxed on gains that accumulated when LTCG on equity was exempt. The mechanism is straightforward: substitute higher of actual cost or FMV as on 31 January 2018, capped at sale price.

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LTCG Pre-2018 on WebNotes

How to apply the grandfathering rule for LTCG on pre-2018 mutual fund holdings