Tax is applied to the gain portion of each redemption. Gain = withdrawal − (remaining cost basis ÷ opening value × withdrawal). Gains are grouped by Indian financial year (April–March). The first ₹1,25,000 of gain in each FY is exempt; any remainder is taxed at the rate you set (default 12.5%, equity LTCG under Income-tax Act 2025 s.198 / erstwhile 112A). “Tax is Extra” pays that tax from the remaining corpus. “Withdraw Includes Tax” leaves the corpus withdrawal unchanged and shows tax as a reduction of cash received. Withdrawals are treated as long-term capital gains from month 1 (average cost). Grandfathering (s.90(7)–(8)) and fund-specific lots are not modelled.