Mutual Fund Redemptions and Tax Implications (India)

[Anoushka Sharma]

I have SIPs for a few MFs which I purchased through ICICI Direct. In January, I redeemed all my MFs just before the market collapsed. Hence, I made some short term capital gains. Now what are the tax implications. My understanding is that I have to pay STT (Securities Transaction Tax). Does ICICI Directly automatically charge STT when I redeem. Or do I have to pay it myself when I file my returns. If I have to do it, what all documents do I need to produce. I know the amount of the profit I made. Can I just put down the amount when I file my returns or do I need to have any supporting documentation. Will a statement of all my MF transactions for the financial year suffice. Please help.

[Pradeep bhatt]

You will taxed 15% as ST tax. ICICI would have deducted STT. No worries. For other questions talk to some tax consultant. Things are different from previous year now.

[Anupam Sinha]

For all the units that were purchased before an year i.e. all the units you had bought before Jan 08 you don't owe any money. For the rest of the units you would be charged 10% of the profit. The 15% STCG tax is from this financial year.