Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Direct Tax »
Open DEMAT Account in 24 hrs
 Govt kicks off direct tax code revision
 ITR 2024 25 Check tax department s update on TDS and refunds
 Income Tax: Why did some taxpayers receive notice for discrepancy in house rent receipt? IT Dept explains
 Income tax exemption: 4 financial instruments you can still invest into before March 31
 CBDT drops small tax demands but not TCS, TDS claims
 ITR Refund: Awaiting money from Income Tax? Here's why you have not yet received your amount
 Income Tax Notice: What to do if you receive a Section 143 (1) notice from taxman?
 Average tax return processing time cut to 10 days: CBDT
 7 types of Income Tax Notice ITR filers may receive for AY 2023-24
 ITR filing: Do these advance preparations before filing your income tax return
 What are the strategies to maximize tax refunds after submitting an income tax return (ITR)?

ITR for FY18 cannot be revised now, but you can still pay tax due
May, 02nd 2019

I have been investing in mutual funds since 2005 and have a fund value of Rs 20 lakh. If I withdraw all my units what will be the long term capital gains tax on it?

In FY 17-18, I received Rs 16,000 as interest on savings bank account. I did not mention that in my returns. Can I rectify my returns now and pay the tax on the interest amount?
– Shweta Mohan

No, the Income Tax Return for FY 17-18 cannot be revised now as the deadline for it was March 31, 2019. You can consider payment of tax and informing the tax department so that in the event of any enquiry by the tax department, you will be able to prove that you have fulfilled your onus of reporting the income and payment of consequent tax.

How should I account for the scholar-ship that my son receives every year and does he have to pay any tax on that?
—Ajay Srivastava

The scholarship can be considered tax-free if your son is pursuing a degree at an eligible institution, (it has a consistent staff, curricu-lum and enrolled student body), he uses the money for tuition and other needs like books, supplies and equipment. However, scholarship for other purposes like accommodation, living expenses, etc., has to be reported. If your son is aged less than 18, you need to report taxable part of it in your income and pay tax accordingly. Else, your son will need to report in his tax return if his total income exceeds minimum exemption limit.

I have been investing in mutual funds since 2005 and have a fund value of Rs 20 lakh. If I withdraw all my units what will be the long term capital gains tax on it?
—Gaurav Bisht

Yes, the long term capital gain tax will be levied whether these mutual funds are equity oriented or otherwise. As per the Finance Act 2018, exemption for LTCG on equity oriented mutual funds (including ELSS) has been withdrawn, therefore no exemption will be available in respect of LTCG from transfer of ELSS on or after April 1, 2018 and such LTCG in excess of Rs 1 lakh will be taxed at 10%. For investments made prior to February 1, 2018, the cost will be indexed up to FY 17-18 and then the gain shall be calculated. However, any loss arising due to such indexation shall be ignored. The short term capital gains shall be taxed at 15%.

Investments in debt funds are considered long-term if the period of holding is more than 36 months and the gain shall be calculated after indexation. The long term capital gains is taxed at 20% and the short term gains will be taxed as per the applicable slab rate.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting