I have started the monthly SIP’s of Rs.2,000/- each in below REGULAR mutual funds from Apr-2016:
- HDFC Mid-Cap Opportunities Fund
- ICICI Pru-Value Discovery Fund
- BNP Paribas Mid-Cap Fund
But after 4 SIP’s (Total Rs.18,000), I have switched the above mutual funds to DIRECT plans as I don’t have knowledge about Short Term Capital Gain Tax.
So, can you please let me know how much STCG tax I have to pay in this financial year and do I need to declare it to my organization as they are doing the tax calculation (I am in 20% IT slab).
Thanks & Regards,
Yes, you have to declare this income also to your employer as your TDS will be based on your total income. Regarding taxation, refer my blog post “Mutual Fund Taxation – Capital Gain Tax Rates for FY 2016-17“.