Dear Sir,
When I invest say 5 lakhs in a debt mutual fund that gives me a 8% return - so the interest accumulated would have 40,000/- at the end of the 1st year. If I choose to redeem say 30,000/- from my debt fund partially what is the implication & how much tax should I pay assuming I am in 20% tax bracket? I understand it will be added to my taxable income & I got to pay tax as per my tax bracket - but then my query is:
- Will my tax be 6000/- + surcharge & cess? (or)
- Is it like I have withdrawn only 6% of the amount that I have invested so I got to also consider the redeemed amount to be at 6% of 30,000/- which is 1,800/- & pay the tax as 360/- + surcharge & cess?
Thank you in advance for your replies ...
CAclubindia
