MC Explains: How to get your capital gains statement for MF investments

CAPITAL GAINS COMPUTATION

As the deadline for filing income tax returns nears, many individuals run around to get all relevant inputs pertaining to their income. One of these is the capital gains booked the previous financial year. With more and more people investing in mutual funds (MF), the capital gains computation is a growing requirement.

Most mutual funds houses and brokers offer a ready-made solution. However, some brokers do not offer one. Also, many individuals change their brokers over a period of time and all details are not available under one login. Plus, there are those who invest in direct schemes of MFs. For all such cases, registrar and transfer agents (RTA) such as KFin and CAMS offer an online tool to compute capital gains.

Where do you get it?

The Kfin tool can be accessed here.

The CAMS resource is available here

These are free tools and work with all your investments spread across MF houses.

Statement in your mailbox

In these tools, you should select the period as the previous year and key in your PAN, registered email id, and set a password for the file that will be sent to you. Also, select `All mutual funds’. This ensures that you do not miss any transactions done in the previous year. You will get an email from the RTA within minutes with a document containing details of the capital gains you’ve booked the previous financial year — 2022-2023.

ALSO READ: ITR filing: Mind the disclosures while filing tax returns to keep taxman at bay

You can generate such a statement for any financial year by choosing the relevant year while filling up the online form.

Tax-liability

For the financial year 2022-2023, capital gains booked in excess of Rs 1 lakh on equity funds are taxed at 10 percent if they are held for more than one year. For units held for less than one year, the gains are taxed at 15 percent.

For non-equity fund units held for three years or more, the gains booked are taxed at 20 percent, post indexation. Gains from units held for less than three years are taxed per your slab rate.

ALSO READ: Now, get Mahila Samman Savings Certificate at your bank

Recent changes disallowing indexation benefits on debt funds are applicable from FY2023-2024.

The capital gains statement received from RTAs does not mention the tax you need to pay. It simply shows the capital gains booked. You need to account for capital gains booked elsewhere and opt for a set-off, if applicable, and then compute your tax liability. It is better to consult a tax expert on this.