I got a notice from INCOME TAX dept. that my annual information states that I had an income of 15,00,500 for the F.Y 2023 -24 and I need to file returns for it. My question is do I need to pay the tax after filing the returns or was the tax deducted when I withdrew my investment? My investment was in crypto.

Ans: Respected Sir,

you may file either ITR- 1 or ITR-2 depending on the complexity of the income. Yes, the lock in period of 3 years applies on ELSS schemes and if withdrawn before that it would attract taxability. Please look at the below a detailed note, which would be helpful to you. Withdrawal from Tax Saver Mutual Fund: If you made a withdrawal of Rs. 65,000 from your tax saver mutual fund, it's important to note that withdrawals from equity-linked saving schemes (ELSS) are subject to tax implications.

- ELSS investments have a lock-in period of three years. Withdrawals made before the completion of the lock-in period are considered as short-term capital gains.

ITR Form: Since you are a teacher by profession, your income is likely from salary and other sources. If you do not have any business income, you would typically file your income tax return using ITR-1 (Sahaj) or ITR-2, depending on the complexity of your income sources.

ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources (like interest income), and total income up to Rs. 50 lakh.
ITR-2: For individuals and Hindu Undivided Families (HUFs) not eligible to file ITR-1 and having income from salary, house property, capital gains, and more than one house property, etc.

Ans: Yes you should file ITR as it has multiple benefits

Ans: You have got best results from your investment, by smartly investing in Securities.
However, you would be subject to Income Tax only when you book the profit by selling the same. As it is, your funds keep on growing & you don't sell the same. there is no Income Tax liability.
Most welcome for any further clarifications. Thanks.