I have made a short term capital gains of approximately Rs 1,200 by selling some of my mutual fund units. Please let me know if I need to report the same to income tax when filing my returns, I come under income tax slab of 10%.
- D Venkata Rajeev
You will have to disclose the gains that you have made to the income tax authority when filing your income tax returns. The rate applicable would however depend upon whether the fund in question is equity-oriented or a debt fund. For an equity fund your short term capital gains would be taxed at a rate of 15 per cent (plus surcharge and cess), whereas, in case of a debt fund the short term gains are added to your income and taxed according to your tax slab.
This article was originally published on November 18, 2010.
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