Is TDS deducted on Debt Mutual funds?
As a resident Indian, there will be no TDS when you sell/redeem your units
Is TDS deducted on Debt Mutual funds?
Ramesh Shankar, Chennai
As a resident Indian, there will be no TDS when you sell/redeem your units. You are required to show the income and pay taxes, if any, when you file your returns. However, for a non-resident Indian, while the tax laws remain the same for capital gains, TDS will be deducted, at the applicable rates, at the time of redemption. In debt funds, any capital gains made on holding periods more than 36 months are treated as long term and taxed at 20 per cent with indexation. On short-term capital gains, you are taxed at your normal income slab rate.