I redeemed by Equity MF's in this FY (2022-2023) after helding more than 5 years. Capital Gains is around Rs 1,50,000. My consfusion is whether entire 150,000 would be taxable under LTCG or Rs. 50,000 be taxable as there is exemption upto Rs. 1 Lakh ? Please give proper clarification.

It's very informative to read your column in Rediff. I have some queries I hope you can help me with: I have not worked since 2017, and there is no income. But I have some investments in equities and equity MFs long term. Hope to hear your valuable answers on these questions. My questions are: 1. If I redeem my MF how is the capital gain tax computed? I know that 10% is the tax on the gains. But since I have no income and as there is no tax for earning till 2.5 Lakh, and additionally 1 lakh (or is it 1.5lakh) on equity MF redemptions, can I deduct 3.5 lakh from the amount received through gains and apply 10% tax on remaining? Anil Rego::The basic exemption can also be claimed additionally. 2. Also, what is the difference in terms LTCG on long term equities, long term equity MFs and long term balanced MFs? Anil Rego::Balanced MFs with equity holding above 65% and equity MFs, both are treated as equity funds and will be taxed as equity fund. Balanced funds with equity less than 65% will be treated similar to debt funds (non-equity). 3. Can long term loss in equity sale be adjusted with long term gain of equity MF or only with similar equity gains? Please advise.

Thank you for all the advice in your column which I find very interesting. I have recently redeemed some mutual fund equity investments that fall into two categories. The first set are those I held for nearly 9 years and the second set is recent vintage as its average holding age is under 4 years. 1. What is the capital gains tax that I have to pay and how is it computed? 2. Is the exemption amount of Rs 2 lakhs available for capital gains also? 3. How to pay the CG tax amount and when is it due for payment? Many thanks for your advice.

Clarification on re-investment of LTCG amount from Equity MF redeemed during FY 2021-22 [AY2022-23] to save Tax. I am a retired professional and have been filing the returns under ‘old tax regime’ to claim the benefits of deductions u/s 80C, 80D, 80TTB, Standard Deduction, etc. I had purchased the units of equity oriented close-ended mutual fund on April 11, 2018 with a lock-in period of 1300 days i.e., > 3years, which I have automatically redeemed after the lock-in period; and the redemption proceeds [deposit amount plus the Long-Term Capital Gain] have been received on Nov 1, 2021. The total LTCG gain is of more than Rs 100,000. I understand that out of total LTCG gain an amount of Rs 100,000 will be fully exempted from the tax, and only the balance amount will be subjected to tax @10% plus cess without indexation. Kindly confirm. Since this has been my first time investing in such a scheme, I am not well versed.  I hope you will look into the above queries and will arrange to provide the answers at the earliest, in order to make the investment in the Bond well within the time-limit up to 30th March 2022, and to avoid last day rush. Further, since the amount has been received in 1st week of Nov 2021, can it be invested till 30th April 2022 i.e., within 6 months from the date of receipt to get the tax relief against FY 2021-22 or shall it be invested before 31st March 2022? 

Under the proposed new tax scheme, is the figure of Rs. 7 Lakhs inclusive of LTCG from sale of shares and mutual funds? Meaning, if one has regular income of 5,50,000 p.a. from pension, FD interest, etc and a capital gain of 1,50,000 from sale of equity - total amounting to Rs. 7 lakh, will his tax liability be nil or what will be his tax liability?