Taxation of final redemption proceeds of IDCW payout MF

Hello!

I purchased units of SBI Magnum Income Fund - IDCW Payout option (INF200K01610) worth 1,00,000 in FY 2012-2013.

The fund has not paid any dividend payout in recent years. So, I decided to redeem all my units in March 2022.

Upon payout, the redemption yielded 1.25 Lakh.

I'm unable to find the taxation guidelines for the redemption amount. My questions are:

1. Is the "gain" therein (25,000 rupees) subject to LTCG?

2. This being a debt-oriented fund, is indexation applicable?

3. If I apply indexation, that is coming to a loss, so can that loss be set off against other LTCG from other MF redemptions?

If anyone can share the guidelines on how this is treated and under which Schedule and heading the redemption proceeds are to be mentioned, it would be very helpful.

Thank you.

Replies (1)

1. Yes.

2. Yes.

3. Correct.

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