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Is SWP withdrawal from balanced funds taxable

Is SWP amount is taxable on balance funds for every month withdrawal? Will AMC Deducts the TDS? or shall I need to show in the IT returns? Please clarify?

Mar 27, 2017 by Syed, Bangalore  |   Mutual Fund

Please note the following in context to your query about SWP withdrawals from balanced funds -

1. Please note that capital gains arising from each SWP withdrawals from balanced funds, after 365 days, will be tax free under long term capital gains.

2. In case of capital gains arising from SWP withdrawals within or less than 365 days, it will be treated as short term capital gains and taxed accordingly. However, there will be no TDS if you are a resident investor. But, if you are a NRI investor, TDS @17.7675 will attract and the SWP amount will be paid post deducting the short term capital gain tax.

3. You must show the capital gains or losses arising out of every SWP withdrawal While filing your income tax returns.

Hope we could answer your query in detail and you are happy with it!

Thanks for writing to us.

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