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Damayanti
Damayanti
Ramalingam

Ramalingam Kalirajan5033 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 2024

Asked on - Mar 27, 2024Hindi

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Sir I am housewife. I have no earning. Got 3 lakh rupees from mutual fund repurchase as long term capital gain. Shall I pay tax and file income tax.
Ans: As a housewife with no other income, your tax liability on long-term capital gains (LTCG) from mutual funds needs to be considered.

Long-Term Capital Gain Tax on Mutual Funds:
Long-term capital gains from equity mutual funds are taxable at 10% if the LTCG exceeds Rs. 1 lakh in a financial year, without the benefit of indexation.

Do you need to pay tax?

LTCG Calculation: If your LTCG from mutual funds is more than Rs. 1 lakh in the financial year, you will need to pay tax on the amount exceeding Rs. 1 lakh at 10%.
Exemption Limit: If your total income, including LTCG, is below the taxable limit (basic exemption limit), you may not be required to pay tax.
Tax Filing: Even if you're not liable to pay tax due to income being below the exemption limit, you should still consider filing an income tax return to report the LTCG. Filing an income tax return will also serve as proof of your income source.
Steps to Follow:

Calculate LTCG: Calculate your LTCG from mutual fund repurchase.
Check Exemption Limit: Determine if your total income, including LTCG, is below the taxable limit for the financial year.
Tax Payment: If your LTCG exceeds Rs. 1 lakh and you have a tax liability, pay the tax before filing the income tax return.
File Income Tax Return: Even if not liable to pay tax, file an income tax return to report LTCG and claim exemption, if applicable.
Keep Records: Maintain records of mutual fund statements and LTCG calculations for future reference.
Conclusion:
Given the above, it's advisable to calculate your LTCG, assess tax liability, and file an income tax return accordingly. If unsure about the calculations or tax implications, consider consulting a tax advisor or chartered accountant for guidance.
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