I went through the number of queries you have answered and found it very useful. Appreciate it.

I have a query regarding the Long Term Capital Gains for mutual funds.

From the mutual fund website, I have downloaded the capital gains statement for one of my mutual funds.

However, I am a little bit confused regarding the LTCG amount which I should declare in my ITR-2.

Under Section C, the 'long term without index' is Rs 16,714.55. But when declaring LTCG, I have to mention 'Indexed LTCG' based on the year of investment.

1. Please let me know how I need to calculate this amount. Should the indexed LTCG amount be declared in ITR-2 or Rs 16,714.55?
2. If indexed LTCG has to be declared, why is that mutual fund AMC do not provide it in the statement?

I once again thank you for your time.

Ans: Yes, if you have incurred any capital loss on selling Equity funds after 31-03-2018, you can set them off against any LTCG.In your case, you can set off this long-term capital loss against Long Term Debt MF capital gain and the balance gain will only be taxable.

Ans: Equity mutual funds or stocks which are held more than 12 months are considered as long-term capital gains. The Govt. introduced LTCG TAX of 10% in 2018, if the gain exceeds Rs 100,000.

As per the 2018-19 budget, since there was no tax payable on long term capital gains earlier, it allowed for grandfathering. ie. The gains only after a cutoff date of 31^st January 2018 will be considered. Thus, you need to take the NAV as on 31^st Jan, 2018 as the cost of purchase.

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.

Ans: Based on the information you've provided, it's likely you won't have any LTCG tax liability for FY 2023-24. Here's why:

Sale proceeds: Rs. 2.76 lakhs
Reinvestment in ELSS: Rs. 1.00 lakh
ELSS (Equity Linked Savings Scheme) investment qualifies for deduction under Section 80C of the Income Tax Act. Up to Rs. 1.5 lakh invested in ELSS can be deducted from your taxable income.

Taxable LTCG (if any): Sale proceeds (Rs. 2.76 lakh) - Reinvestment (Rs. 1.00 lakh) = Rs. 1.76 lakh (assuming no indexation benefit for simplicity).
However, since your ELSS investment is Rs. 1.00 lakh, which is more than the potential taxable LTCG of Rs. 1.76 lakh, your entire LTCG might be exempt under Section 80C.

Tax implication: With full exemption under Section 80C, you likely won't have any LTCG tax to pay for FY 2023-24.

IT Return Form:

Considering the potential for minimal or no taxable income, ITR Form 1 (Sahaj) might be suitable for you. However, it's always best to consult a tax professional for confirmation based on your complete financial picture.

Disclaimer: This is a simplified analysis based on the information provided. Consulting a registered tax advisor is recommended for personalized advice considering your specific tax situation and any other income sources you might have.