No TDS Deducted on Capital Gains | Value Research Capital gains from debt funds held for less than 36 months are treated as short-term and attract tax
Ask Value Research

No TDS Deducted on Capital Gains

Capital gains from debt funds held for less than 36 months are treated as short-term and attract tax

I have invested some amount in debt mutual funds. If I withdraw units or some amount before 1 year, will they deduct TDS immediately on capital gains? How will they deduct tax on my short term capital gains?
- Yugandhar Nalabolu

No TDS will be deducted on capital gains. But given that any capital gains arising out of debt fund investments held for less than 36 months are treated as 'short term' you will be liable to declare and pay tax on these capital gains. The gains will be taxed at your income tax slab rate. This rule is applicable to individual residents. Only in case of NRIs, does the AMC deduct tax on capital gains at the time of redemption.


Other Categories