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Senior Citizen With Debt Mutual Fund Gains: Can I Claim 80C Deduction?

Mihir Tanna |1035 Answers |Ask -Follow

Tax Expert - Answered on Mar 17, 2025

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by BHARAT on Mar 16, 2025Hindi

I don't have Income to be taxed at slab rate except STCG from DEBT MUTUAL FUNDS I do have income from LTCG, DIVIDENDS, BANK INTEREST ETC If I invest in ELSS whether IT DEPT will allow deduction under Section 80c against STCG FROM DEBT MUTUAL FUNDS in OLD TAX REGIME or they will first set off this income against Rs 3 Lakhs income which is BASIC EXEMPTION LIMIT for Senior Citizens Also, where to show STCG FROM DEBT MUTUAL FUNDS in ITR 3

Ans: 80C is not allowed against STCG taxable u/s 111A and LTCG taxable u/s 112 as well as 112A. Hence in your case STCG not covered in 111A will be adjusted against 80C

Also for old regime 2.5 lacs basic exemption limit will apply

In ITR 3 is not notified for FY 24-25, but in FY 23-24 there was option at serial number 5 wherein you have to show short term capital gain not covered in previous 4 options.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Question by Devendra - Nov 07, 2022Hindi

Good Morning. I am a fan of yours and read you severally on Rediff replying queries of various Tax Problems. Sir, now I have a tax query and earnestly request you to resolve that which is as follows: My query is: I booked an under construction flat worth Rs.45.00 lacs which is scheduled to be ready for procession in year F.Y.2025-26. Now I sold shares worth Rs. 10,00,000/- and total amount paid to builder in F.Y.2022-23. Out of shares sold my LTCG IS Rs.700,000/-. Can I claim exemption for LTCG to that amount only which is given as advance in corresponding year? Again in F.Y. 2023-24 I will pay Rs.20,00,000/- by selling shares and LTCG of Rs.10,00,000/-. Can I claim Exemption for LTCG? Same process will happen in next 2 F.Ys. till procession of my new Flat. Can I claim exemption on LTCG on sale of shares in each financial year? Please also guide to fill ITR also for claiming above exemption in parts.

Ans: In respect of capital gains you can claim exemption from long term capital gains if the net sale consideration is invested in booking an under construction house. You get an extended period of three years to get possession in case it is booked with a developer.

In case the sale consideration is not fully invested in the residential house before filing of the Income Tax Return, the unutilised money has to be deposited with a bank under Capital Gains Account Scheme. The money deposited can be utilised within the prescribed period for payment of house.

You have to keep in mind that to claim this exemption, you should not own more than one residential house property on the date of sale of the shares except the one in respect of which you are claiming the exemption.

So once you claim exemption in FY 22 23, it is not advisable to claim exemption against gain earned in subsequent years.

In Income Tax Return, you can show the amount invested in property as exemption u/s 54F and if the entire 10 lakh consideration can not be invested in property then open CG account and show amount in ITR accordingly.

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Mihir Tanna |1035 Answers |Ask -Follow

Tax Expert - Answered on Sep 20, 2023