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Mihir Tanna |1062 Answers |Ask -Follow

Tax Expert - Answered on Nov 27, 2023

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 RANGANATH on Jul 10, 2023Hindi

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Should every item mentioned in Form 26AS be mentioned in ITR? like for example purchase and sale of mutual fund securities. Actually it is a conversion from direct to regular.

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.

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Question by Satish - Dec 17, 2020Hindi

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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: You need to include short/long term capital gains/losses of mutual funds while filling your ITR, along with interest income.

Switches from one scheme to another will be treated as transfer under the IT act 1961 and will be subject to levy of capital gain tax, even if the gains are reinvested and not removed.

Whenever you switch or sell any mutual fund, you need show it as the sale value and compute the capital gain/loss by reducing the corresponding purchase value from the sale value.

The mutual fund capital gains will not show up in your 26AS statement, but still needs to be declared in your return.

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