Selling equity shares for ₹12 lakh in 2026 may attract capital gains tax, but smart reinvestment can reduce or eliminate liability. Options like Public Provident Fund (PPF), ELSS mutual funds, ULIPs, and NPS provide tax benefits under Sections 80C and 80CCD, while reinvestment in residential property offers capital gains exemption.
When you sell equity shares, gains above the exemption threshold are taxable. However, India’s tax laws provide several avenues to minimize or avoid tax. According to The Economic Times, Tax Guru, and The Hans India, investors can leverage EEE (Exempt-Exempt-Exempt) schemes and capital gains exemptions to protect wealth.
Popular tax-saving investments include PPF, EPF, ELSS mutual funds, ULIPs, and NPS, all of which qualify for deductions under Section 80C/80CCD. Additionally, reinvesting capital gains in residential property under Section 54F or in capital gains bonds under Section 54EC can help avoid tax altogether.
Experts emphasize that choosing between market-linked options (ELSS, ULIPs) and safe government-backed schemes (PPF, NPS) depends on your risk appetite and long-term goals.
Major Takeaways
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PPF, EPF, ULIPs, ELSS mutual funds, and NPS offer tax deductions under Section 80C/80CCD
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Section 54F allows exemption if gains are reinvested in residential property
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Section 54EC bonds (NHAI/REC) provide capital gains exemption
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EEE schemes ensure contributions, earnings, and withdrawals remain tax-free
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Market-linked options provide higher returns but carry risk
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Government-backed schemes ensure safety and guaranteed tax benefits
Conclusion
By strategically investing ₹12 lakh in a mix of tax-saving schemes and capital gains exemptions, you can significantly reduce or even eliminate tax liability in 2026. Balancing risk, safety, and long-term growth ensures your wealth is preserved while complying with India’s evolving tax framework.
Sources: The Economic Times, Tax Guru, The Hans India