I am a 62-year-old singleton retiree living on interest income from my FD. Every year TDS used to get deducted from this interest income and I used to submit 16A form given by the bank to claim refund. I have also invested in Equity Mutual Funds from these interest amounts in different AMCs in the past few years, and though I used to do switches, I have NOT done any profit booking as there is no need for me to do so.

Now my query is as per new ITR should I show the investments in these MFs too? Right now, the 26AS form only shows the TDS deducted.

Ans: Yes, you can. Even though your employer has not considered the same and the TDS has been deducted, you can still get a refund by disclosing the interest on your home loan and any other deductions not considered by your employer, while filing your ITR.

Ans: EPF withdrawals post-retirement (age of 58 years) is completely tax-free till the date of retirement.

Subsequently, the interest on the EPF amount is taxable as per applicable income tax slab rates. TDS would also be deductible.

Ans: Dear Rajesh,

Firstly, I appreciate your diligence in managing your taxes. Now, coming to your query, the choice between ITR-1 and ITR-2 depends on the nature of your capital gains.

ITR-1, also known as Sahaj, is for individuals with income up to Rs. 50 lakh from salary, one house property, other sources (interest, etc.), and agricultural income up to Rs. 5,000. However, it does not allow you to report capital gains.

On the other hand, ITR-2 is for individuals and HUFs not having income from profits and gains of business or profession. It includes the provision to report capital gains.

In your case, since you have capital gains from the sale of mutual funds, even if it's less than the taxable limit, it would be more appropriate to file ITR-2. The TDS that has been deducted can be claimed as a refund in your return if your total income is below the taxable limit.

Please consult with a tax professional or chartered accountant to ensure you're following the correct procedure as per the latest tax laws.

Remember, it's always better to be accurate in your tax filings to avoid any future discrepancies or issues with the tax department.

I hope this helps.

Best Regards

Ans: From FY 2022-23, 26AS will show details of transactions on which TDS is deducted. AIS statement will show details of purchase and sale of mutual fund units. Taxpayer are not required to show purchase of mutual fund unless amount invested in mutual fund is eligible for deduction u/s 80C.

Further, conversion from direct to regular is considered as transfer of capital asset which is chargeable to tax.

Ans: Form : ITR 2
Income head : Capital gains
Tax liability depends upon your other income sources. If only this is the amount of income then no tax liability.

Please consult with your CA as well on this.