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Tax Expert - Answered on Apr 25, 2023

CA Tejas Chokshi has over 20 years of experience in financial planning, income tax planning, strategic and risk advisory, banking and financial products and accounting and auditing.
He is an information system auditor, a forensic auditor and concurrent bank auditor.
Chokshi, who has a master’s degree in management, audit and accounting from Gujarat University, has completed his CA from the Institute of Chartered Accountants of India.... more
AYAN Question by AYAN on Mar 06, 2023Hindi
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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.

Ans: As per the current tax laws, long-term capital gains (LTCG) from equity mutual funds are taxable at a flat rate of 10% on gains above Rs. 1 lakh in a financial year. So, in your case, since your LTCG is Rs. 1,50,000, the taxable amount would be Rs. 50,000 (i.e., Rs. 1,50,000 - Rs. 1,00,000).

Please note that the exemption of Rs. 1 lakh applies to the total LTCG from all equity-oriented mutual funds that you have sold during a financial year. So, if you have already sold equity mutual funds earlier in this financial year and claimed the exemption up to Rs. 1 lakh, then the remaining gains would be taxed at 10% above the exemption limit.

It is important to note that the tax laws can change in the future, and you should always consult a tax expert or refer to the latest tax laws before making any tax-related decisions.
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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Asked by Anonymous - Apr 11, 2024Hindi
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Am a senior citizen and pensioner. For FY 2023-24, i have to, may be, pay LTCG from equity mutual fund sale. 2.76 lacs received as sale proceeds. Statement provided by fund house shows '0' tax with indexation and 1.30 lacs without indexation. Out of the sale proceeds i have reinvested 1.00 lacs in ELSS fund. What will be my tax amount and which I. T. Return form should be used. Thanks n Regards
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Sale proceeds: Rs. 2.76 lakhs
Reinvestment in ELSS: Rs. 1.00 lakh
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