Tax Rate on LTCG from Redemption of Debt Fund Units

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niki (Querist)
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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)
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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.............."

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