When to Move Equity to Debt: Tax, SIP & 3

I made a gain of Rs 3 lakh this year from investments in stocks and cryptocurrencies. What are the tax implications? What should I keep in mind while filing returns?

Under the Income-tax Act, 2025 and Income Tax Rules, 2026, short-term capital gains (STCG) from stocks are taxed at 20 per cent, while cryptocurrency gains are taxed at 30 per cent. Additionally, a 4 per cent cess is applied to these rates.

For cryptocurrency, only the cost of acquisition is deductable. No deduction is permitted for exchange fees. In addition, a 1 per cent tax deducted at source (TDS) under Section 393 applies on the transfer value. This must be reconciled in Form 168 and adjusted against the final tax payable while filing the income tax return (ITR).

I have a corpus of Rs 10 lakh through systematic investment plans (SIPs) in equity mutual funds (MFs). I plan to pursue higher education in the next three years. Should I continue investing like this or shift to safer options?

Your requirement is not immediate. Your expenses are typically spread year-wise over a two-year course. You have time, but not enough to stay fully aggressive. Do not change your current strategy, let it continue for the next 12-15 months. About two years before you need the money, gradually move the amount required for the first year into safer options instead of shifting it all at once. The amount needed for the second year can stay invested in the markets a bit longer.

Also, consider your income over the next 2-3 years. The existing corpus does not have to fund everything. This is more about managing timing.

I have just started my first job. I want to begin my financial journey on the right track but I am unsure of which investments to choose: MFs, National Pension System (NPS), or a high-interest savings account. Given my age and risk appetite, what should my investment priorities be, and how can I build a safety net?

You have just started earning, so get comfortable managing money. Set aside some money so you are not forced to break investments for small needs. After that, start with SIPs in a good MF and stay consistent. That is enough for the first year or two.

Do not overthink risk appetite. You will understand it only when markets fluctuate and your investments react. Start small, observe your reactions, and build gradually. Early investing is more about getting comfortable with the process rather than getting everything right.