Hello Experts,
I would like to understand the tax calculation in case of debt investments.
Scenario 1
Assuming, I invest 1 lakh in a debt fund today. Let’s say, it grows to Rs.1,10,000/- in next 6 months [in the same FY], and then I partially redeem my investment of Rs.50k.
What will be my tax liability at the end of FY and what amount should I fill in “income from other sources” while filing returns?
Scenario 2
I invest in FD a sum of Rs.1 lakh for 5 years. Which is set to become Rs.1,20,000/- assumingly.
Option A – Should I wait for the 5th year to declare my “other source” as 20k, which would be added to my taxable income and taxed at my current slab.
Option B – Is there an option that each year, I declare an earned income (which is not actually earned/redeem), so that my net-tax-outgoing stays less when compared to Option-A.
I hope I was able to explain the scenarios.
Waiting for a response.
Thanks in advance.
Kapil Malhotra