l How do I calculate tax on gains made from debt mutual funds and dividends from stocks and will these be reflected in my ITR?—Deepak Kumar
Units of debt mutual funds acquired on or after April 1, 2023 are treated as short-term capital assets. Any gains arising from their transfer are taxed at the applicable slab rates, irrespective of the holding period. For units purchased prior to this date, such capital assets qualify as long-term under Section 112 (since holding period for more than 24 months has already been lapsed) and are taxable at 12.5% without indexation.
Dividends received from stocks are taxable at the applicable slab rates in the hands of the investor. Both mutual funds gain data and dividend receipts are reflected in the Annual Information Statement. However, this data is system-generated and may be incomplete or inaccurate. You must cross-verify with your broker contract notes, mutual fund account statements, and dividend certificates before filing your Income Tax Return, and make corrections if pre-filled data is wrong.
l Can I claim both HRA exemption and interest deduction on a home loan under the old tax regime?—Akash Varghese
Under the old tax regime, a taxpayer can claim both House Rent Allowance (HRA) exemption and deduction for interest on a home loan simultaneously, subject to certain conditions. There is no provision in the Act that expressly prevents or restricts claiming both benefits together.
However, they must relate to different properties: HRA for actual rented residence, interest for a separate self-occupied home (not same premises). Since this dual claim is carefully scrutinised by the tax department, it is crucial to maintain clear evidence, such as a valid rent agreement, regular rent receipts, proof of rent payment via bank transfer, and your official home loan interest certificate.
l I sold my flat six months ago and the gain was about Rs 50 lakh. Can I invest the money in capital gains bonds to save tax and what will be the lock-in period?—Ankush Duggal
Exemption from long term capital gains can be claimed on gains arising from the transfer of land, building, or both, if the amount is invested in specified bonds (e.g. NHAI, REC) within six months from the date of transfer, subject to a maximum investment limit of Rs 50 lakh in a financial year.
Since the capital gain is about Rs 50 lakh and the sale took place six months ago, you can claim the exemption, provided the investment is made within the prescribed six-month period (if still within the timeline). Further, the bonds carry a lock-in period of five years from the date of investment.
The writer is managing partner, AKM Global. Send your queries to fepersonal finance@expressindia.com
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.