A resident individual is having only income in the current FY of Rs 4.8 lakh LTCG from Mutual Funds. Is he/she required to pay tax and if yes, how much? If no, is ITR filing mandatory?

Ans: In India, for the current Financial Year (FY) 2024-2025, a resident individual with a long-term capital gain (LTCG) of Rs 1 lakh or more from mutual funds is liable to pay tax on the excess amount over Rs 1 lakh.

In this scenario:

• LTCG from Mutual Funds = Rs 4.8 lakh
• Exempt limit = Rs 1 lakh
• Since the LTCG (Rs 4.8 lakh) is greater than the exempt limit (Rs 1 lakh), the individual will have to pay tax on Rs (4.8 lakh minus 1 lakh) = Rs 3.8 lakh.
• Tax rate on LTCG from equity funds: 10% without any indexation benefit.
• Tax payable: Rs 3.8 lakh * 10% = Rs 38,000
• So yes, the individual will need to pay tax of Rs 38,000.

Regarding ITR filing:

Even though the total income is below the basic exemption limit, filing an ITR is recommended if the individual has LTCG, for carrying forward any losses and claiming any tax refunds.

It's advisable to consult a tax advisor for personalised advice on your specific situation.