Tax planning
Debt mutual fund and specified mutual fund gains, Sec 76 (old 50AA)
What this means, checked by a CA
Debt fund units bought on or after 1 April 2023 are always taxed as short-term gains at your slab rate, however long you hold them. Units bought before that date are long term after 24 months and taxed at 12.5%. We read your mutual fund statement, test each fund and purchase date, and report the right figure.
₹999
a year, + 18% GST
- Delivered in 1 working day after the CAMS or KFintech statement
- Due: With the ITR: AY 2026-27 due date 31 July 2026 for ITR-2 (non-audit). Advance tax in the quarter of redemption.
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 5 items
CAMS or KFintech capital gains statement
Purchase date, cost, redemption per lot
Scheme category of each fund
Specified MF test (over 65% debt)
Switch and STP transactions list
Each switch out is a redemption
AIS mutual fund entries
Match redemptions reported by RTAs
Brought forward capital lossesOptional
Set off against these gains
DiscussionWhat we discuss · 5 items
When were the units bought: before or on/after 1 April 2023?
Decides slab rate or 12.5% long term
Is the fund a pure debt fund, or hybrid, gold, international or fund of funds?
Only funds over 65% debt fall under Sec 76 (old 50AA)
Did you switch between schemes or plans (regular to direct)?
A switch is usually a taxable redemption
Did you redeem through SWP or STP during the year?
Every instalment is a separate redemption
What is your slab rate, and do you have other short-term losses?
Short-term loss can absorb these gains
FormsForms we file · 6 items
Download consolidated capital gains statement for the financial year
Where: https://www.camsonline.com and https://mfs.kfintech.com. Due: Before filing
Tag each lot: specified MF bought on or after 1 April 2023, or other
Where: Internal working. Due: Before filing
Compute gains
Sec 76 (old Sec 50AA) lots: sale value minus cost minus expenses = short-term gain at slab. Pre-April 2023 lots: held over 24 months = long-term at 12.5% without indexation (sales on or after 23 July 2024); otherwise short term at slab
Where: Internal working. Due: Before filing
Set off short-term losses, then long-term losses against long-term gains only
Where: Internal working. Due: Before filing
Fill Schedule CG (other assets rows; Sec 76 (old Sec 50AA) gains as short-term), plus CYLA, BFLA, CFL
Where: https://www.incometax.gov.in > e-File > ITR-2. Due: AY 2026-27: 31 July 2026
Pay balance tax and e-verify
Where: https://www.incometax.gov.in. Due: Before filing; verify within 30 days
DeliverablesWhat you get · 2 items
Lot-wise debt fund gains working
When: Before filing
Filed ITR acknowledgement
When: Same day
Questions people ask
I bought a debt fund in 2022 and sold in 2026. What rate?
Held over 24 months and bought before 1 April 2023, so long-term at 12.5% without indexation.
Is a liquid fund covered?
Yes, if it invests more than 65% in debt and money market instruments, which liquid funds do.
Does the new Income-tax Act change this from April 2026?
No. The rule continues as Sec 76 of the 2025 Act with the same dates and definition.
Is switching from regular to direct plan taxable?
Only consolidation of plans or schemes is exempt under Sec 47(xviii) and (xix); a normal switch is a redemption.
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