Need help/suggestion on income tax regarding FD/Mutual Fund
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Hi all,
I need some help in understanding how tax works wrt Fixed Deposit and Mutual Fund.
In current year, my total salary income was around 15L and taxable amount was approx 1.45L.
I have a FD which gives me a annual interest of 1L of which 10% TDS was deducted already.
So while filing my income tax , i had to pay tax about 1.7L on income 16L (15+1) with additional 25k extra because of FD. 😭
So my doubt is suppose if I buy Mutual fund that gives say 10% Interest. After selling that and paying the TDS, will the profit be again added to my salary income and get taxed overall like now?
Can you guys give some tips related to tax savings as well? I am new to all this.
Thanks
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Selling/redemption of mutual funds don’t attract tds.
It’ll show up in your ITR as STCG(<1Year) or LTCG(>1Year) . Stcg is taxed at 15% irrespective of tax bracket in itr only . Ltcg is taxes 10% on any amount above 1 Lac in itr only. You don’t pay tax on it twice
It will show in AIS not ITR. He should declare and get refund.
Put that money in equity savings funds, and keep harvesting 1L LTCG per year and enjoy more return than fd without paying additional tax
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If you sell mf holding after a year 10percent, less than that at 15percent... You can sell any amount of units you wish to or even not to sell for a particular fy...