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Time of India
a day ago
- Business
- Time of India
Income Tax Return: Are capital gains from MFs taxed differently under new & old regime? What taxpayers should know about new LTCG, STCG rules
Capital gains from sale of mutual funds (MFs) are taxable In India, under both the old and new income tax regimes. (AI image) Income Tax Return Filing AY 2025-26: One important aspect of income tax return filing, apart from reporting income from salary, is also filling in details of any capital gains - short-term or long-term - that you have made during the financial year. If you are wondering whether taxation of capital gains made from mutual funds differs between the new and the old income tax regime, we have you covered. Capital Gains From MFs: How Does Taxation Work? Capital gains from sale of mutual funds (MFs) are taxable In India, under both the old and new income tax regimes. The categorization of the MF, method of computation of capital gains, is not impacted by the choice of the income tax regime by an individual. 'All the deductions available while computing the capital gains, including towards reinvestment in the specified new asset, continue to be equally available under both the new and old income tax regimes,' says Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax, KPMG in India. Also Read | ITR e-filing FY 2024-25: What is the benefit of pre-filled ITR forms on the income tax portal? Top points In general, from a taxability perspective, MFs are broadly categorized into equity MFs and non-equity MFs. There is also a special category of specified MFs within the non-equity MFs. Parizad Sirwalla tells TOI, 'Effective 23 July 2024, gains from sale of equity MFs, if held for more than 12 months, are classified as Long-term (LTCG) and gains (exceeding Rs 1.25 lakh) are taxable at 12.50%. Short Term Capital Gains (STCG) from sale of equity MFs are taxable at 20%.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Gains from sale of non - equity MFs, held for more than 24 months, are considered LTCG and taxable at 12.50%. STCG from sale of non-equity MFs are taxable as per the income tax slab rates. Further, gains from specified MFs are deemed to be STCG irrespective of the holding period and taxable as per the tax slab rates. Applicable surcharge and cess apply on the above tax rates 'The tax slab rates, surcharge rates and applicable rebates, will apply qua the tax regime chosen. The maximum surcharge under the old tax regime is 37% (triggers beyond income of Rs 5 crore) while under the new regime it is restricted to 25% (triggers beyond income of Rs 2 crore). It may be noted that under both tax regimes, surcharge is restricted to 15% on all LTCG and STCG on equity MF,' Parizad Sirwalla adds. Also Read | ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Business
- Time of India
ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers
ITR filing FY 2024-25: When filing your income tax return for FY 2024-25 (AY 2025-26), the Annual Information Statement is an important document that every taxpayer should be aware of. Tired of too many ads? go ad free now Introduced a few years ago, the Annual Information Statement is a helpful document for transparent and easy tax compliance. The Annual Information Statement serves as a crucial document that displays comprehensive details of a taxpayer's financial transactions throughout the fiscal year. The Annual Information Statement (AIS) and Form 26AS are tools provided by the Income Tax Department to help taxpayers with accurate tax reporting. Individuals paying taxes have the ability to cross-check their income sources and ensure they align with their Form 16, Form 16A or personal financial records. The AIS system enables taxpayers to identify any inconsistencies in their declared income or tax remittances. Also Read | As AIS effectively records the majority of income sources, it aids in preventing omissions and understatements, thereby reducing the likelihood of tax avoidance penalties or evasion charges. To view their AIS, taxpayers need to visit the official e-filing website at and sign in with their account details. The statement is accessible under the 'Services' section, where users can select 'Annual Information Statement'. Users have the option to obtain their yearly statement in either PDF or JSON formats for their preferred financial year. What is the Annual Information Statement (AIS)? Sudhakar Sethuraman, Partner, Deloitte India explains that AIS is a comprehensive report capturing a taxpayer's financial transactions during a financial year such as interest income, dividends, securities transactions, and foreign remittances, offering a broader view of income sources. These transactions are reported in AIS even if there is no associated tax deduction/ collection at source (TDS/TCS). AIS allows the taxpayer to provide feedback on the transactions reported therein. The tax office considers the feedback provided by the taxpayer and AIS is updated to show original and modified values based on this feedback. There is also a facility to view all feedback provided in the form of 'AIS Consolidated Feedback' file which can be downloaded from the portal. As AIS provides securities-related transactions, it aids in comparison of the information reported in AIS with the information provided by the demat account. Securities transactions can be downloaded into excel and can be used for uploading into tax returns in the relevant sections (capital gains/business income). How is AIS different from Form 26AS? Sudhakar Sethuraman explains that unlike AIS, Form 26AS is more oriented towards TDS/TCS. Tired of too many ads? go ad free now It provides a list of incomes (such as salary, interest), TDS/TCS on these and types of tax payments such as advance tax. 'Form 26AS helps taxpayers verify the taxes paid in various forms (such as TDS, TCS, advance tax, self-assessment tax) and the total tax credit available for the relevant financial year,' Sudhakar Sethuraman tells TOI. In short, AIS gives a detailed overview of income and transactions, while Form 26AS focuses on taxes. Also Read |
Mint
06-06-2025
- Business
- Mint
Income Tax: What are Form 16, AIS and 26AS? An explainer
Financial year 2024-25 has ended long ago and taxpayers are busy arranging necessary documents to be able to start the process of filing of income tax (I-T) return. When salaried taxpayers approach their chartered accountant for filing their income tax return, s/he typically asks him for form-16 which is a TDS certificate issued by the employer to employee. In other words, it is a statement that shows tax deducted by the employer on behalf of the employee. Aside from form 16, other documents which you need at the time of filing of income tax return are form 26AS which is a tax credit statement, and AIS which is a comprehensive view of information for a taxpayer displayed in form 26AS. Let us understand more about these documents in detail. Form 16: It is a TDS certificate issued by an employer to an employee. It is proof that the employer deposited the tax with the tax authorities. Form 26AS: It is a consolidated Annual Information Statement for a particular Financial Year (FY). It contains the details of Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax / self-assessment tax / regular assessment tax deposited, refund received during a financial year (if any), Details of any specified financial transactions (SFT), details of tax deducted on sale of immovable property under section 194 IA (in case of seller of such property), TDS defaults (if any), information relating to demand and refund and information relating to pending and completed proceedings. Annual Information Statement: AIS is a comprehensive view of information for a taxpayer displayed in Form 26AS. Taxpayers can provide feedback on information displayed in AIS. It shows both reported value and modified value (i.e. value after considering taxpayer feedback) under each section (i.e. TDS, SFT, Other information). AIS meets these purposes: 1. Shows complete information to the taxpayer with a provision to capture online feedback 2. Encourages voluntary compliance and enables prefilling of return For all personal finance updates, visit here.
India Today
26-05-2025
- Business
- India Today
Filing ITR for 2025? Here's why you must verify your AIS and Form 26AS first
The deadline to file your Income Tax Return (ITR) for the financial year 2024–25 is July 31, 2025. That may seem a while away, but starting early can help you avoid any last-minute mistakes or of the most important things you should do before filing your return is to check your Annual Information Statement (AIS) and Form 26AS. These documents contain details of your income and financial transactions during the year. If you forget to report something, you could end up receiving a notice from the tax ARE AIS AND FORM 26AS?Form 26AS is your tax credit statement. It lists tax deducted at source (TDS), TCS, property purchases, and large financial transactions made during the year. AIS is a more detailed version of this. It includes everything in Form 26AS plus additional details like interest earned on savings accounts, dividends, rent received, capital gains from shares or mutual funds, foreign transfers, and also allows you to give feedback if you find any mistakes or if something doesn't belong to TO ACCESS YOUR AISTo access your AIS, log in to the website using your PAN and the main menu, click on the 'Annual Information Statement (AIS)' option. Hit 'Proceed' and you'll be taken to the AIS portal. There, click on the AIS tile to see your go to the e-File menu, choose 'Income Tax Return', and select 'View AIS'.WHY YOU MUST REVIEW IT CAREFULLYBefore filing your return, go through your AIS and Form 26AS to make sure you've reported all your income. These records reflect your complete financial if you've sold shares, received rent, earned interest from deposits, or got a tax refund, it should all show up in the AIS. If you miss reporting any of these, the department could treat it as income not disclosed, and you might be sent a AN ERROR? HERE'S HOW TO FIX ITAIS has a built-in system to raise complaints or give feedback. If something looks wrong in Part B of your AIS, which shows income, TDS, and high-value transactions, here's what you can click on 'Bulk feedback', pick the incorrect item, and select your reason from the drop-down menu. Once you submit it, the department will review your feedback. If they agree with your explanation, they'll update the figures Watch
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Business Standard
21-05-2025
- Business
- Business Standard
ITR-U changes:Fix tax return errors of up to 4 years but with extra charges
To encourage voluntary compliance, the Central Board of Direct Taxes (CBDT) has notified an updated mechanism for filing income tax returns through ITR-U. Taxpayers now have up to 48 months from the end of the relevant assessment year to correct errors or omissions in previously filed returns, double the earlier 24-month period. However, this extended window comes at a cost. ITR-U is applicable to any individual or corporate entity that has omitted or misreported income, missed deductions, or failed to file returns altogether. What's new in the updated ITR-U? According to Ritika Nayyar, partner at Singhania & Co., the amended framework mandates filing the complete applicable ITR form along with ITR-U, as opposed to the earlier simplified standalone format. 'This includes comprehensive financial details beyond just the additional income,' Nayyar said. The additional tax is now levied progressively based on the delay: 25 per cent of tax and interest if filed within 12 months 50 per cent for 12–24 months 60 per cent for 24–36 months 70 per cent for 36–48 months Sandeep Bhalla, partner at Dhruva Advisors, added that taxpayers must also disclose the source of additional income, provide specific reasons for updating the return, and complete a more detailed verification process. Importantly, the form cannot be used to claim refunds or reduce existing tax liabilities. 'The aim is to regularise tax liabilities before detection by authorities. Penalties under ITR-U are significantly lower than those for tax evasion,' Nayyar noted. Bhalla highlighted that this facility offers a final chance to rectify inconsistencies, such as unreported interest, rental income, or capital gains, particularly if discrepancies appear in the Annual Information Statement (AIS) or Taxpayer Information Summary (TIS). Opportunity and limitations While the 48-month window offers flexibility, both experts cautioned against misuse. 'ITR-U cannot be filed if search or survey actions have been initiated, or in cases involving serious proceedings under laws like the PMLA or Benami Act,' Nayyar said. Taxpayers are urged to match all disclosures with Form 26AS, AIS, and TIS. 'Accuracy is critical. Errors can invite scrutiny despite the voluntary nature of this facility,' Bhalla warned. Final word
