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Regarding Tax Calculation on SWP

m baul (service) (69 Points)

03 September 2021

Dear sir,

My friend Invested INR 2000000/- and getting 14000/- per month as SWP(Systematic Withdrawal Plan).

1.Is withdrawal amount is taxable? Yes or No

2. If Yes How we calculate tax on withdrawal amount?

Pl. suggest.

Thanking You

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184781 Points)
Replied 03 September 2021

1. Yes.

2. Gain over each installment is treated as long term or short term gain, depending upon period of holding.

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m baul (service) (69 Points)
Replied 03 September 2021

Dear sir,

1st of all Thank You...

How we calculate gain over each installment?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184781 Points)
Replied 03 September 2021

Either get capital gain statement from the fund house which gives complete details of the principal amount refunded along with capital gain, which is much easier.

Or calculate the principal amount refunded back in each installment, by consumed units multiplied by the cost of unit at the time of its purchase. Thus go on adding till the end of year.