LTCG tax

How can I get my LTCG tax statement for my equity mutual funds?

As you may be aware that in the union budget 2018, the finance minister has re-introduced Long Term Capital Gain Tax (LTCG tax) on the investment done in stocks and equity mutual funds. As per this regulation, the investor has to pay long-term capital gain tax on the > 1 lakh profit realized from the equity investments. Equity investments include direct share + any equity mutual fund schemes. Any mutual fund scheme where >=65 % of the fund is being invested in the equity market.

The new tax will be applicable from 1st April 2018. So you have a window to escape from paying this tax. For example, if you have held shares or mutual fund units for more than one year and you are selling it before 31.03.2018 you can claim exemption on the long-term capital gain tax.

You can read a detailed article on LTCG tax implication here.

You must be contemplating the option of selling your stocks or mutual funds in order to save LTCG tax. Some of you might have sold off your portfolio in order to save the tax. Some were confused and didn’t do anything until 31st March 2018.

Deciding factors for LTCG tax

Now is the time to file your income tax return for the year 2017-18. You have to declare your capital gain earned from the stock market. The question here is how can I know the tax amount I have to pay as LTCG tax this year? Let me tell you, the calculation is bit complex and cannot be done easily by yourself. Let’s understand the factors you should consider while calculating the tax liability.

  • Type of scheme – Equity scheme is eligible for LTCG tax if the earning is >1 lakh/year.
  • Holding period – Your equity scheme holding period should be > 1 year for LTCG tax liability.
  • Resident status – Your resident status (Resident Indian or NRI) will decide the tax slab and amount.

LTCG tax calculation method

The tax is only applicable to the profit amount exceeding ₹ 1 lakh. It means the tax is remain exempted up to ₹ 1 lakh for an individual in one fiscal. For example, if you LTCG is ₹ 120000 for 2018-19 fiscal, you have to pay 10% LTCG only on the ₹ 20000 as per new proposed tax.

If you sell after 31.03.2018 please refer the table below to derive your payable LTCG amount.

Ltcg tax

Also, please consider below point while calculating your LTCG amount.

  • Indexation of the cost of acquisition is not allowed.
  • The LTCG is applicable to the all listed equity shares and equity oriented mutual funds at 10% where STT is paid on the sale of this units. That means the LTCG is not applicable to the unlisted securities.
  • Cost of acquisition to be taken as the market value as on 31.03.2018, so the impact will not be so high as it seems to be at first glance.

How to download the LTCG tax statement?

As you are aware that the NAV price of 31st January 2018 will be considered for calculating the LTCG tax amount for the financial year 2017-18. It is thus very much important to know the NAV value of your fund as of 31st January 2018. Now you must be thinking that if I have multiple schemes, then how can I get the NAV details of each scheme. Even if you get the NAV value as on 31st January 2018, tax calculation will be very cumbersome.

There is 4 Registrar which are managing all the mutual fund transactions across various fund house. They are the clearing agents helping you to buy and sell the funds. They are:

  • Karvy Computers
  • CAMS (Computer Age Management Service Pvt. Ltd)
  • Franklin Templeton International Services (Provides services only to Franklin Templeton Mutual Funds)
  • Sundaram BNP Paribas Fund Services (Provides services only to Sundaram and BNP Paribas Mutual Funds)

To help the investors like you and me, CAMS (Registrar) has come up with the consolidated LTCG tax statement. With the help of this feature, you will be able to get the tax calculation for your equity funds which are eligible for LTCG taxation.

But there is some limitation to this feature. You will get the statement only for those funds which are being served by CAMS. List of the fund house served by CAMS is as below.

Birla Sunlife Mutual Fund
DSPBR Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
IIFL Mutual Fund
Kotak Mutual Fund
L&T Mutual Fund
Mahindra Mutual Fund
PPFAS Mutual Fund
SBI Mutual Fund
Shriram Mutual Fund
Tata Mutual Fund
Union Mutual Fund

Steps for downloading the LTCG tax statement for CAMS.

Click on this link: Consolidated Realised Gain Statement

Below screen will appear. Please key in the required details as asked.

Please note that the LTCG statement is a mail-back service hence the e-mail will be sent to the registered e-mail address by CAMS within 1 hour of successful submission of the request.

LTCG tax statement - CAMS

It will automatically fetch all the funds linked to the given e-mail address and send you the statement. There is two option of getting the statement, one is you will be sent a download link via e-mail, second is you will be sent a statement as an attachment via e-mail. I personally prefer the second option.

As per the CAMS, you will get a statement via e-mail within 1 hour. As per my own experience, I got the statement within few minutes only. They are pretty fast. You can download this statement from the website for free.

As of now, only CAMS has started this facility. I am waiting for other RTs to start similar service. I will update you once same is available from other RTs.

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