I purchased and sold debt mutual fund within a couple of months. The sale did not show in the tax P&L in zerodha due to an error so it was not added to my return. When i checked the AIS i found these entries.
The cost of acquisation is lower or same, in this case no tax is applicable, should i revise my return to include this or keep it as it is and let it be omitted.
Tax Implication: Debt mutual fund short-term gains are taxed at slab rates, but if the sale price is equal to or less than the acquisition cost, there is no profit and hence no tax payable.
Recommendation: While no tax is due on a zero-gain transaction, you should ideally file a revised return to reconcile with the AIS data and avoid automated mismatch flags from the Income Tax Department.
Summarized Answer: Even though no tax is due on a debt mutual fund transaction with zero capital gains or a loss, omitting it creates an inconsistency with the AIS. It is recommended to file a revised return to report the transaction accurately and prevent automated CPC mismatch notices.
These are IDCW liquid funds
1) Originally 24.894 units were purchased at INR 1004.21 per unit.
2) In the three months i held this fund 0.37 units total was received as IDCW dividend. But this amount was added to the total units instead of encashed and credited to my bank account.
3) When i sold , 24.894 + 0.37 units were sold at INR 1002.92 per unit.
Should i keep the 0.37 units seperate as dividend income @ 1002.92 per unit and and 24.894 units sale as capital loss? or combined 24.894 + 0.37 unit as short term loss ?
MF sales through Zerodha Coin show up in AIS via the RTA (CAMS or KFintech), not directly from Zerodha. This creates a few common mismatches:
COMMON REASONS FOR DIFFERENCE:
1. Gross vs gain: AIS shows the full sale value (redemption amount), not your capital gain. Your actual gain is sale value minus cost of acquisition (adjusted for indexation for debt MF bought before April 2023).
2. Timing: Zerodha shows transaction date. AIS may reflect T+1 settlement date from the RTA.
3. Multiple RTAs: If you hold MFs across platforms, AIS aggregates from both CAMS and KFintech. Each entry needs to be matched to your actual trades.
HOW TO RECONCILE:
- Download your capital gains statement directly from CAMS (camsonline.com) for FY 2025-26
- Cross-check sale value and cost against your 26AS and AIS
- Report in Schedule CG (Capital Gains) in ITR-2 or ITR-3
TAX RATES:
- LTCG on equity MF held more than 12 months: 12.5% on gains above Rs. 1.25 lakh per year. STCG: 20%.
- Debt MF purchased after April 1, 2023: Taxed as per income tax slab, no LTCG benefit.
This [capital gains tax guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-rates-asset-class-ready-reckoner-india-ay-2026-27) has the full rate table and ITR schedule mapping for all asset classes.
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