Long Term Capital Gain on Equity Mutual Fund

Two things are happening here.

First, the exemption limit increased to Rs 1.25 LAKH from AY 2026-27 (Budget 2024 change). So your Rs 1,200 gain is well below the limit and attracts zero tax.

Second, the portal charges 10% by default until you apply grandfathering. For units bought before 31 January 2018, enter the Fair Market Value (FMV) per unit as on 31 January 2018 in Schedule 112A.

How to fix in Schedule 112A:
- Open the schedule, enter actual date of purchase
- In the column Fair Market Value per unit as on January 31, 2018, enter the NAV on that date (available from AMFI website or the AMC directly)
- The utility recalculates the indexed cost automatically and the gain drops

You still need to report this in Schedule 112A even though tax comes to zero. AIS has it flagged, so a blank Schedule 112A can trigger a defective return notice.

Reference: taxgarden.in/blog/mutual-fund-taxation-india-ay-2026-27 covers the grandfathering calculation with examples.