Tax Rate on LTCG from Redemption of Debt Fund Units

This query is : Resolved

niki (Querist)
Follow

12 October 2021 Dear All,

Is there an option NOT to avail benefit of indexation while compuating tax on LTCG from redemption of units of debt mutual fund? The assessee is a resident individual.

The LTCG on sale of debt fund units is coming to Rs. 1,00,000/- (without indexation) and Rs. 70,000 (with indexation) for A. Y. 2021-22. If we calculate tax @ 10% on LTCG (without indexation) , the assesseee has to pay only Rs. 10,000/- but with the benefit of indexation, the tax rate is 20% so tax payable is Rs. 14,000/-.

So can the assessee offer to tax Rs. 1,00,000/- as LTCG (without claiming benefit of indexation ) and pay tax @ 10% on such LTCG.

Also, Under which sub-schedule & point of Capital Gains Schedule can we show such LTCG in the ITR Utility for filing return?

"Point 9 - From sale of assets where B1 to B8 above are not applicable" only has "Cost of acquisition with indexation" column.

Please advise.

Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 October 2021 For Resident Indians, only second option is available. i.e LTCG of debt MF is taxed at 20% with indexation.
Yes, declare it under " From Sale Of Assets.............."