Sir, I purchases ICICI Prudential Wealth Builder Fund on Nov 2012 with a premiums of Rs. 30,000/- per annum for 5 years only (Policy term - 10 years) and it matured on Nov 2022 and I got matured amount of 2.97 Lakhs. Is the matured amount is taxable and if, what amount of tax to be paid by me. Please advice

Ans: Dear Sunanda,

Thank you for your inquiry regarding your tax liability on the sale of your SBI Conservative Hybrid Fund Reg Growth (formerly SBI Magnum Monthly Income Plan).

As you mentioned, you purchased the fund in April 2020 and sold 50% of it in April 2023, holding the investment for 3 years. Based on this, your investment qualifies as a long-term capital asset.

Now, let's calculate your tax liability:

Long-term capital gains tax: Since the SBI Conservative Hybrid Fund is a debt-oriented mutual fund, long-term capital gains (LTCG) on debt funds are taxed at the rate of 20% with indexation. Indexation is a method of adjusting the purchase price of an asset to account for inflation. This helps reduce your tax liability by lowering your capital gains.
To calculate your indexed cost of acquisition, you'll need the Cost Inflation Index (CII) values for the financial years when you purchased and sold the units. Please note that I do not have the CII values for 2023 as my knowledge is up to September 2021. You can find the CII values for 2023 on the Income Tax Department's website or consult a tax professional to get the updated values.
Next, calculate your capital gains by subtracting the indexed cost of acquisition from the sale value. Finally, apply the 20% tax rate on the long-term capital gains to find your tax liability.
Please remember that the tax rates and regulations may change, and it is essential to consult a tax professional to ensure the most accurate and up-to-date information.

I hope this helps you understand your tax liability on the sale of your SBI Conservative Hybrid Fund.

Best regards,

Ans: Kindly check scheme Usually amount received on maturity is taxable.

Ans: It's tax free

Ans: The LIC Jeevan Anand policy provides tax benefits to the insured individuals on the premium paid, as well as on the claims that are received.

This benefit is applicable under Section 80C and Section 10(10D) of the Income Tax Act. Any income received by you is required to be reflected in the ITR, even if tax-free, in the suitable column of ITR.