Tax on Equity Mutual Fund

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This query is : Resolved

Quick Summary

If you've inherited equity mutual fund units and redeemed them, you'll likely face Long Term Capital Gains (LTCG) tax. For calculating this, the cost basis is determined by the fund's value on 31st January 2018, not the original purchase price. You'll need to find this 'grandfathered' value to accurately report your capital gains in your ITR for AY 25-26.

Shantanu Bose

Shantanu Bose (Querist)

26 February 2025 My father purchased Nippon india focussed equity fund on 28/03/2006 worth 30000. He expired in 2023 and being a legal heir as his son,those units were transmitted in my name in May 2024 which I redeemed fully in August and September of 2024 in staggered manner. What would be my tax implications as I've to file ITR for AY 25-26 ? The transactions is getting displayed in AIS. Help please.
Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)

26 February 2025 taxable as LTCG. cost will be grandfathered value of 31 Jan 2018..

Shantanu Bose

Shantanu Bose (Querist)

27 February 2025 Thanks sir. So how to find the capital gain taking into account grandfathered value of 31st January 2018 as cost,I sold total 1822 units @122 nav,
Thank you

Nikhil Kaushik

Nikhil Kaushik (Expert)

27 February 2025 you need to check the closing value the mutual fund scheme as at 31 January 2018.

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