Hi,
I have an annual salary of 7.5 lakhs. This year I did not pay any tax by availing all savings options like 80C, 80D etc. Few days back I redeemed Rs. 65000 from my tax saving mutual fund. I wish to know if I it would add up in my taxable income? Would I have to pay tax on that ?
Ans: Hi Gaurav
Taxability of ELSS MF would be dependent on your holding period as also the capital gain that arises on the said redemption.
Accordingly, if you have redeemed the ELSS MF within 3 years of acquiring them then the amount of deduction that you claimed on account of such investment would be added to your current income.
Additionally, the gain on the redemption would be taxed as capital gain