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Large turn over of MF switch in and switch out

Tax queries 326 views 8 replies

In my AIS, it is showign around 1.5 crore buying and 1.5 selling transactions(turnover). However, it is due to switch in and switchout transactions like i moved from dividend option to growth option. Also i move frequently from one scheme to another frequently to avoid volatility. Not much fresh purchases. Will this cause any problem to me like scrutiny, tax notice etc?

Replies (8)
No problem until you disclose the gains or losses arising out of exit from various mutual fund schemes ( switch out ) as the same is chargeable to capital gains.
Agree with above comment

Will it be considered as high value transaction(newly introduced SFT-018)? Till now mf high value transaction limit is 10 lacs per annum? I will pay capital gains arised. However, even if i pay capital gains, can Income tax department ask queries or doubt due to high turnover.

There is no queries if everything is properly disclosed and gains are reflected properly. Turnover is not an important factor for asking capital gain queries.

Thanks for your quick responses. Only last question, will capital gains come now pre-populated in ITR form as it has all transaction details now. Or still i need to calculate and fill manually all the detail like short term capital gains or long term capital gain.?

It is not pre-popuplated. And even if it is pre-populated, there is  need for manual checking. So yes, need to do manually

As there are large number of transactions, it will not be possible to report individual transactions. Can i fill aggregated capital gain, short term and long term? Can new details in AIR can help in this to get other mandatory details to fill capital gain in ITR2?

I gathered like below, is this sufficient to fill ITR.

Equity
   Short term                       0.00
   Long Term with Index             0.00 
   Long Term without Index     Rs.  XXXXXXXX 
   
Debt
   Short term                  Rs. ABC
   Long Term with Index        Rs. -DEF(loss)
   Long Term without Index     Rs. +GHI


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