Regarding Tax Calculation on SWP

ITR 161 views 3 replies

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

Replies (3)

1. Yes.

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

Dear sir,

1st of all Thank You...

How we calculate gain over each installment?

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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register