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Taxing times

Check on tax implications when redeeming mutual fund units to know your post-tax returns

I have sold one of my mutual fund investments and have made a short term capital gains of approximately Rs 1,200. I come under income tax slab of 10%. Please let me know if I need to report the same to income tax during my filing of returns and what is the capital gains tax for the same?
- D Venkata Rajeev

As per the income tax laws, you will have to disclose the short-term capital gains that you have made at the time of filing your tax returns. The short-term capital gains tax rate will depend on the kind of fund that you have sold—equity or debt. For instance, equity funds attract a 15% short-term capital gains tax rate excluding surcharge and cess. In case of debt funds, the short-term capital gains are added to your income and taxed according to the tax slab you fall under.



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