Investment Properties

Which investment returns are taxable in India?

I work for a private company and regularly paying my tax for last three years.This year I have redeemed my PF investment of last 3 years and I am expecting to redeem some of my mutual fund investment (past 3years) also and will be using it for personal purpose. I would like to know weather this cash inflow will be considered as my income (apart from my regular salary)so as to pay income tax for it?

Public Comments

1. Your PF redemption is taxable because the number of years your pf was with the government is less than 5 years hence the PF amount would be included with your net salary. lets say your salary is 4 lacs and you redeem 50k of your PF your next taxable salary is 4.5 lacs. MF redemption is totally tax free Cheers, Anand http://anandvijayakumar.blogspot.com mail me at anandvijayakumar@ymail.com if you need any more details.
2. I am not sure what you mean by PF investment & redemption of the same. As for redemption of MF it depends on the type of fund. LTCG on equity funds is tax free. LTCG on debt funds is taxable.