YOUR QUERIES: INCOME TAX: Tax on equity mutual funds sale only on LTCG above Rs 1 lakh

Subsequently, in your case, assuming that mutual funds are equity-oriented, LTCG over and above Rs 1 lakh shall be taxed at prescribed price.

By Chirag Nangia

I’m within the Rs 30-lakh tax bracket. I’m salaried and have mutual fund investments of over one 12 months. I’m planning redemption of a few of these. Which ITR kind ought to I file? Is tax on LTCG relevant on the entire redemption quantity or the quantity over Rs 1 lakh?
—Sanjay Khar
Since you might have revenue underneath head Wage and Long run Capital Achieve (LTCG), you shall be required to file your Earnings Tax Return in Kind ITR 2. Additional, capital positive aspects arising from switch of long run capital property being fairness shares/ or models of an equity-oriented fund, shall be taxed on the price of 10% of such capital positive aspects exceeding Rs 1 lakh. Subsequently, in your case, assuming that mutual funds are equity-oriented, LTCG over and above Rs 1 lakh shall be taxed at prescribed price.

I’m a senior citizen with central authorities pension, financial institution curiosity, dividends and capital achieve on sale of shares. Throughout FY 2020-21, I made capital positive aspects on sale of shares. I offered some models of a balanced benefit fund at long run capital loss. How can I regulate the achieve and the loss?
—Pankaj Oak
As per the Earnings Tax Act, long-term capital loss could also be set off towards revenue underneath head long run capital achieve in a monetary 12 months. Subsequently, you might set-off your long run loss from sale of mutual funds towards long run achieve on sale of shares for FY 2020-21.

I’ve salaried revenue of round `6 lakh. I’ve executed some share buying and selling each in fairness supply and F&O segments. The fairness buying and selling contains each intra-day in addition to long-term trades. I’ve no different supply of revenue like home property, and so forth. Which ITR kind ought to I file?
—Rajesh P
Earnings from intra-day buying and selling is classed as enterprise revenue, taxable underneath head ‘earnings and positive aspects from enterprise and occupation’. In case of investing, a sale transaction provides rise to capital positive aspects, which can be labeled as long-term or short-term relying upon the interval of holding. Chances are you’ll disclose revenue in Kind ITR 3 that has been notified for people together with salaried people, having revenue from enterprise and occupation. Capital achieve/ loss (if any) might also be disclosed therein.

The author is director, Nangia Andersen India. Ship your queries to fepersonalfinance@expressindia.com