{"id":9259,"date":"2025-07-08T19:14:51","date_gmt":"2025-07-08T19:14:51","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=9259"},"modified":"2026-01-24T20:00:48","modified_gmt":"2026-01-24T20:00:48","slug":"key-guidance-advisory-for-mf-investors-w-r-t-itr-filing","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/","title":{"rendered":"Key guidance Advisory for MF Investors w.r.t. ITR Filing"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-5487\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/03\/Is-you-dont-willing-to-Pay-Income-Tax-for-the-FY-2022-23..jpeg\" alt=\"I Tax\" width=\"1136\" height=\"575\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/03\/Is-you-dont-willing-to-Pay-Income-Tax-for-the-FY-2022-23..jpeg 1000w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/03\/Is-you-dont-willing-to-Pay-Income-Tax-for-the-FY-2022-23.-300x152.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/03\/Is-you-dont-willing-to-Pay-Income-Tax-for-the-FY-2022-23.-768x389.jpeg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/03\/Is-you-dont-willing-to-Pay-Income-Tax-for-the-FY-2022-23.-800x405.jpeg 800w\" sizes=\"(max-width: 1136px) 100vw, 1136px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a04e1a5063ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a04e1a5063ca\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Key_guidance_for_MF_to_ensure_accurate_ITR_filings_avoid_inflated_capital_gains_reporting_due_to_duplicate_entries_in_the_AIS\" title=\"Key guidance for MF to ensure accurate ITR filings &amp; avoid inflated capital gains reporting due to duplicate entries in the AIS:\">Key guidance for MF to ensure accurate ITR filings &amp; avoid inflated capital gains reporting due to duplicate entries in the AIS:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#What_is_the_issue_duplicate_mutual_fund_redemptions_in_AIS\" title=\"What is the issue: duplicate mutual fund redemptions in AIS\">What is the issue: duplicate mutual fund redemptions in AIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Implications_of_Not_Rectifying_This_Impacted_Filers_are_as_below\" title=\"Implications of Not Rectifying This : Impacted Filers are as below\">Implications of Not Rectifying This : Impacted Filers are as below<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#What_is_the_next_Recommended_Course_of_Action_for_above_problem\" title=\"What is the next Recommended Course of Action for above problem\">What is the next Recommended Course of Action for above problem<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Classification_of_Mutual_Funds_for_Income%E2%80%91Tax_Purposes_India\" title=\"Classification of Mutual Funds for Income\u2011Tax Purposes (India)\">Classification of Mutual Funds for Income\u2011Tax Purposes (India)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Equity%E2%80%91Oriented_Mutual_Funds\" title=\"Equity\u2011Oriented Mutual Funds\">Equity\u2011Oriented Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Examples_of_Equity%E2%80%91Oriented_Funds\" title=\"Examples of Equity\u2011Oriented Funds\">Examples of Equity\u2011Oriented Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Legal_Basis\" title=\"Legal Basis\">Legal Basis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Non%E2%80%91Equity%E2%80%91Oriented_Mutual_Funds\" title=\"Non\u2011Equity\u2011Oriented Mutual Funds\">Non\u2011Equity\u2011Oriented Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Funds_falling_under_this_category\" title=\"Funds falling under this category\">Funds falling under this category<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Critical_practical_points\" title=\"Critical practical points\">Critical practical points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Why_This_Classification_Matters\" title=\"Why This Classification Matters\">Why This Classification Matters<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#BIG_ITR_UPDATE_for_AY_2025%E2%80%9326\" title=\"BIG ITR UPDATE for A.Y. 2025\u201326\">BIG ITR UPDATE for A.Y. 2025\u201326<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_24b_%E2%80%93_Interest_on_Borrowed_Capital_Home_Loan_taxpayer_must_disclose\" title=\"Section 24(b) \u2013 Interest on Borrowed Capital (Home Loan): taxpayer must disclose:\">Section 24(b) \u2013 Interest on Borrowed Capital (Home Loan): taxpayer must disclose:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80C_%E2%80%93_Life_Insurance_PPF_ELSS_etc\" title=\"Section 80C \u2013 Life Insurance, PPF, ELSS, etc.\">Section 80C \u2013 Life Insurance, PPF, ELSS, etc.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Sections_80CCC_80CCD1_80CCD1B_%E2%80%93_NPS_Pension_Deductions\" title=\"Sections 80CCC, 80CCD(1), 80CCD(1B) \u2013 NPS \/ Pension Deductions\">Sections 80CCC, 80CCD(1), 80CCD(1B) \u2013 NPS \/ Pension Deductions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80D_%E2%80%93_Medical_Insurance_Premium\" title=\"Section 80D \u2013 Medical Insurance Premium\">Section 80D \u2013 Medical Insurance Premium<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80DD_%E2%80%93_Dependent_with_Disability\" title=\"Section 80DD \u2013 Dependent with Disability\">Section 80DD \u2013 Dependent with Disability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80DDB_%E2%80%93_Specified_Disease_Expenditure\" title=\"Section 80DDB \u2013 Specified Disease Expenditure\">Section 80DDB \u2013 Specified Disease Expenditure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80E_%E2%80%93_Interest_on_Education_Loan\" title=\"Section 80E \u2013 Interest on Education Loan\">Section 80E \u2013 Interest on Education Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80EE_80EEA_%E2%80%93_Home_Loan_for_First-Time_Buyers_Affordable_Housing\" title=\"Section 80EE \/ 80EEA \u2013 Home Loan for First-Time Buyers \/ Affordable Housing\">Section 80EE \/ 80EEA \u2013 Home Loan for First-Time Buyers \/ Affordable Housing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80EEB_%E2%80%93_Interest_on_Loan_for_Electric_Vehicle_EV\" title=\"Section 80EEB \u2013 Interest on Loan for Electric Vehicle (EV)\">Section 80EEB \u2013 Interest on Loan for Electric Vehicle (EV)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Section_80U_%E2%80%93_Deduction_for_Person_with_Disability_Self\" title=\"Section 80U \u2013 Deduction for Person with Disability (Self)\">Section 80U \u2013 Deduction for Person with Disability (Self)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Common_Mistake_to_Avoid\" title=\"Common Mistake to Avoid :\u00a0\">Common Mistake to Avoid :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-guidance-advisory-for-mf-investors-w-r-t-itr-filing\/#Why_This_Matters\" title=\"Why This Matters\">Why This Matters<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_guidance_for_MF_to_ensure_accurate_ITR_filings_avoid_inflated_capital_gains_reporting_due_to_duplicate_entries_in_the_AIS\"><\/span><span style=\"color: #000080;\">Key guidance for MF to ensure accurate ITR filings &amp; avoid inflated capital gains reporting due to duplicate entries in the AIS:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_issue_duplicate_mutual_fund_redemptions_in_AIS\"><\/span><span style=\"color: #000080;\"><strong>What is the issue: duplicate mutual fund redemptions in AIS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>What\u2019s Happening in such a case: During this year\u2019s ITR filing season, a peculiar issue has emerged in the AIS reporting of mutual fund transactions. Many taxpayers are noticing that the same mutual fund redemption\/sale is being reported three times under SFT (Specified Financial Transactions) in their AIS.<\/p>\n<p>Mutual Fund redemption\/sale transactions are being reported multiple times in AIS. And NSDL, CAMS, and KFINTECH (all reporting entities) are independently reporting the <em>same transaction<\/em>. Which results in the triplication of a single MF sale in AIS under the Specified Financial Transactions section, inflating the capital gains figure.<\/p>\n<p>Like Taxpayers using auto-imported AIS data into ITR filing utilities. &amp; Tax professionals relying heavily on AIS for capital gain reporting without cross-verification. A CA firm must make the alert clients of this issue during MF redemption reporting. And all the document reconciliations as working papers in case of future inquiries. Moreover, educate CA junior staff or associates to review MF entries diligently this year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Implications_of_Not_Rectifying_This_Impacted_Filers_are_as_below\"><\/span><span style=\"color: #000080;\">Implications of Not Rectifying This : Impacted Filers are as below<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Overstated Capital Gains \u2192 Higher tax liability, i.e., it now appears as 3x the sale amount in the AIS, creating confusion and inflated capital gains.<\/li>\n<li>Mismatch with actual fund house statements, i.e., duplicate reporting by different RTAs (Registrar &amp; Transfer Agents) or depositories due to overlapping data-sharing mechanisms.<\/li>\n<li>Potential IT scrutiny or notices due to misreporting<\/li>\n<li>Incorrect ITRs that may require future revisions<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_next_Recommended_Course_of_Action_for_above_problem\"><\/span><span style=\"color: #000080;\">What is the next Recommended Course of Action for above problem<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Do Not Rely Solely on AIS for MF Sales Data: Taxpayer AIS is just an <em>information source<\/em>, not a tax computation tool.<\/li>\n<li>Cross-Check With Original Records: Taxpayer must reconcile AIS entries with:\n<ul>\n<li>Fund house Consolidated Account Statement (CAS)<\/li>\n<li>Demat statements (NSDL\/CDSL)<\/li>\n<li>Broker contract notes (if applicable)<\/li>\n<li>Form 26AS (for overall tax credit tracking)<\/li>\n<\/ul>\n<\/li>\n<li>Identify &amp; Remove Duplicates Manually: In case the same folio &amp; transaction is reported multiple times, include only one. Then the taxpayer must maintain a working paper\/documentation for justification. Taxpayer must cross-verify with actual mutual fund statements or broker reports.<\/li>\n<li>Use Caution With Auto-Prefill in Software: It is to be noted that many tax filing software\/tools auto-pull AIS data, including duplications. And always review prefilled MF data before final submission.<\/li>\n<li>Report Accurate Capital Gains in Schedule CG of ITR: Taxpayer Use actual NAV, dates, and units sold from verified statements. And Use the Capital Gains Statement from the CAMS\/KFIN or AMC website to support it.<\/li>\n<\/ol>\n<p>In conclusion, Taxpayer can say that you should always reconcile mutual fund sales from Form 26AS + AIS + original fund house\/demat statements. Do not blindly accept AIS entries, especially in case of mutual fund transactions.<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-8283\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/photo_2024-12-18_23-29-00.jpg\" alt=\"HOW HUF CAN HELP SAVE TAX ON MFs\" width=\"1098\" height=\"1098\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/photo_2024-12-18_23-29-00.jpg 870w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/photo_2024-12-18_23-29-00-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/photo_2024-12-18_23-29-00-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/photo_2024-12-18_23-29-00-768x768.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/07\/photo_2024-12-18_23-29-00-800x800.jpg 800w\" sizes=\"(max-width: 1098px) 100vw, 1098px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Classification_of_Mutual_Funds_for_Income%E2%80%91Tax_Purposes_India\"><\/span><span style=\"color: #000080;\"><strong>Classification of Mutual Funds for Income\u2011Tax Purposes (India)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<p><em>Taxation depends on asset allocation not the marketing label of the fund.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Equity%E2%80%91Oriented_Mutual_Funds\"><\/span><span style=\"color: #000080;\"><strong>Equity\u2011Oriented Mutual Funds<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A mutual fund is classified as equity-oriented if a minimum<span style=\"color: #000080;\">\u00a0of 65% of the corpus is invested in equity shares of Indian companies<\/span><\/p>\n<ul>\n<li>Must be listed on a recognized stock exchange in India.<\/li>\n<li>This is the decisive factor, not\u00a0the scheme name.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Examples_of_Equity%E2%80%91Oriented_Funds\"><\/span><span style=\"color: #000080;\"><strong>Examples of Equity\u2011Oriented Funds<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Large\u2011Cap Funds<\/li>\n<li>Mid\u2011Cap &amp; Small\u2011Cap Funds<\/li>\n<li>Flexi\u2011Cap \/ Multi\u2011Cap Funds<\/li>\n<li>ELSS (Tax\u2011saving funds)<\/li>\n<li>Sectoral\/thematic equity funds investing \u226565% in Indian equities<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Legal_Basis\"><\/span><span style=\"color: #000080;\"><strong>Legal Basis<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Section 112A \u2192 Long\u2011term capital gains on equity<\/li>\n<li>Section 111A \u2192 Short\u2011term capital gains on equity<br \/>\nThese sections apply only if the fund qualifies as equity-oriented.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Non%E2%80%91Equity%E2%80%91Oriented_Mutual_Funds\"><\/span><span style=\"color: #000080;\"><strong>Non\u2011Equity\u2011Oriented Mutual Funds<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Any mutual fund not meeting the 65% Indian equity condition is treated as non\u2011equity\u2011oriented for tax purposes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Funds_falling_under_this_category\"><\/span><span style=\"color: #000080;\"><strong>Funds falling under this category<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Debt Funds : (liquid, money market, corporate bond, gilt, target maturity, etc.)<\/li>\n<li>Gold Funds \/ Gold ETFs<\/li>\n<li>International Equity Funds : (US, global, emerging markets, NASDAQ, S&amp;P 500 funds)<\/li>\n<li>Hybrid Funds : where equity exposure &lt; 65%<\/li>\n<li>Fund of Funds (FoFs) : (except those that invest \u226590% into an Indian equity fund)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Critical_practical_points\"><\/span><span style=\"color: #000080;\"><strong>Critical practical points<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>International equity funds do NOT qualify as equity-oriented even though they invest in shares\u00a0 because they invest in foreign equities.<\/li>\n<li>The 65% equity test must be satisfied throughout the year, not only at year\u2011end.<\/li>\n<li>Taxation of STCG\/LTCG differs completely from equity\u2011oriented schemes.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Why_This_Classification_Matters\"><\/span><span style=\"color: #000080;\"><strong>Why This Classification Matters<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Your mutual fund\u2019s taxation depends entirely on whether it is equity\u2011oriented or non\u2011equity\u2011oriented. This classification determines:<\/p>\n<ul>\n<li>Holding Period : <span style=\"font-size: 16px;\">Equity LTCG: &gt;12 months &amp; <\/span><span style=\"font-size: 16px;\">Non\u2011equity LTCG: &gt;36 months (depending on rules applicable)<\/span><\/li>\n<li>Tax Rates\n<ul>\n<li>Equity STCG @ 15% (Sec 111A)<\/li>\n<li>Equity LTCG @ 10% above \u20b91 lakh (Sec 112A)<\/li>\n<li>Non\u2011equity: Slab rate or applicable LTCG rules (indexation rules depend on amendments)<\/li>\n<\/ul>\n<\/li>\n<li>Indexation Benefits : <span style=\"font-size: 16px;\">Debt\/gold\/international funds may or may not get indexation depending on period &amp; law amendments.<\/span><\/li>\n<li>TDS &amp; Reporting: Non-equity\u00a0funds may trigger TDS in certain cases (resident individuals, NRI taxation, etc.).<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3423\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/06\/itr..jpg\" alt=\"PROVISIONS FOR ITR FILING FOR THE AY 2021-22\" width=\"1106\" height=\"732\" \/><\/p>\n<h2 data-start=\"351\" data-end=\"395\"><span class=\"ez-toc-section\" id=\"BIG_ITR_UPDATE_for_AY_2025%E2%80%9326\"><\/span><span style=\"color: #000080;\"><strong data-start=\"357\" data-end=\"393\">BIG ITR UPDATE for A.Y. 2025\u201326<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"396\" data-end=\"452\">New Annexures Mandatory for Claiming Deductions\u00a0<em data-start=\"453\" data-end=\"492\">(Especially under the Old Tax Regime)\u00a0<\/em>To enhance transparency, ensure proper documentation, and prevent bogus deduction claims, the Income Tax Department has introduced detailed annexures in the ITRs for AY 2025\u201326. deatils below <span style=\"color: #000080;\">Mandatory Annexures\u2014Section-wise Summary mentioned here under :\u00a0<\/span><\/p>\n<h4 data-start=\"792\" data-end=\"865\"><span class=\"ez-toc-section\" id=\"Section_24b_%E2%80%93_Interest_on_Borrowed_Capital_Home_Loan_taxpayer_must_disclose\"><\/span><span style=\"color: #000080;\"><strong data-start=\"801\" data-end=\"818\">Section 24(b)<\/strong> \u2013 <em data-start=\"821\" data-end=\"863\">Interest on Borrowed Capital (Home Loan): taxpayer m<\/em>ust disclose:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"883\" data-end=\"1081\">\n<li data-start=\"883\" data-end=\"919\">\n<p data-start=\"885\" data-end=\"919\">Source of Loan (Bank \/ Others)<\/p>\n<\/li>\n<li data-start=\"920\" data-end=\"940\">\n<p data-start=\"922\" data-end=\"940\">Name of Lender<\/p>\n<\/li>\n<li data-start=\"941\" data-end=\"966\">\n<p data-start=\"943\" data-end=\"966\">Loan Account Number<\/p>\n<\/li>\n<li data-start=\"967\" data-end=\"986\">\n<p data-start=\"969\" data-end=\"986\">Sanction Date<\/p>\n<\/li>\n<li data-start=\"987\" data-end=\"1010\">\n<p data-start=\"989\" data-end=\"1010\">Total Loan Amount<\/p>\n<\/li>\n<li data-start=\"1011\" data-end=\"1045\">\n<p data-start=\"1013\" data-end=\"1045\">Outstanding as on 31st March<\/p>\n<\/li>\n<li data-start=\"1046\" data-end=\"1081\">\n<p data-start=\"1048\" data-end=\"1081\">Interest eligible for deduction<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"1088\" data-end=\"1150\"><span class=\"ez-toc-section\" id=\"Section_80C_%E2%80%93_Life_Insurance_PPF_ELSS_etc\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1097\" data-end=\"1112\">Section 80C<\/strong> \u2013 <em data-start=\"1115\" data-end=\"1148\">Life Insurance, PPF, ELSS, etc.<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"1151\" data-end=\"1217\">\n<li data-start=\"1151\" data-end=\"1217\">\n<p data-start=\"1153\" data-end=\"1217\">Policy Number or Document ID mandatory for each investment<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"1224\" data-end=\"1303\"><span class=\"ez-toc-section\" id=\"Sections_80CCC_80CCD1_80CCD1B_%E2%80%93_NPS_Pension_Deductions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1233\" data-end=\"1272\">Sections 80CCC, 80CCD(1), 80CCD(1B)<\/strong> \u2013 <em data-start=\"1275\" data-end=\"1301\">NPS \/ Pension Deductions<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"1304\" data-end=\"1336\">\n<li data-start=\"1304\" data-end=\"1336\">\n<p data-start=\"1306\" data-end=\"1336\">Must provide PRAN Number<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"1343\" data-end=\"1399\"><span class=\"ez-toc-section\" id=\"Section_80D_%E2%80%93_Medical_Insurance_Premium\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1352\" data-end=\"1367\">Section 80D<\/strong> \u2013 <em data-start=\"1370\" data-end=\"1397\">Medical Insurance Premium<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"1400\" data-end=\"1451\">\n<li data-start=\"1400\" data-end=\"1431\">\n<p data-start=\"1402\" data-end=\"1431\">Name of Insurance Company<\/p>\n<\/li>\n<li data-start=\"1432\" data-end=\"1451\">\n<p data-start=\"1434\" data-end=\"1451\">Policy Number<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"1458\" data-end=\"1515\"><span class=\"ez-toc-section\" id=\"Section_80DD_%E2%80%93_Dependent_with_Disability\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1467\" data-end=\"1483\">Section 80DD<\/strong> \u2013 <em data-start=\"1486\" data-end=\"1513\">Dependent with Disability<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"1516\" data-end=\"1640\">\n<li data-start=\"1516\" data-end=\"1640\">\n<p data-start=\"1518\" data-end=\"1640\">Details of the disabled dependent <em data-start=\"1556\" data-end=\"1640\">(Exact format may vary \u2014 typically name, relation, disability certificate details)<\/em><\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"1647\" data-end=\"1709\"><span class=\"ez-toc-section\" id=\"Section_80DDB_%E2%80%93_Specified_Disease_Expenditure\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1656\" data-end=\"1673\">Section 80DDB<\/strong> \u2013 <em data-start=\"1676\" data-end=\"1707\">Specified Disease Expenditure<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"1710\" data-end=\"1835\">\n<li data-start=\"1710\" data-end=\"1764\">\n<p data-start=\"1712\" data-end=\"1764\">Disease must be selected from drop-down list<\/p>\n<\/li>\n<li data-start=\"1765\" data-end=\"1835\">\n<p data-start=\"1767\" data-end=\"1835\">Prescribed certificate from specialist required (as per Form 10-I)<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"1842\" data-end=\"1899\"><span class=\"ez-toc-section\" id=\"Section_80E_%E2%80%93_Interest_on_Education_Loan\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1851\" data-end=\"1866\">Section 80E<\/strong> \u2013 <em data-start=\"1869\" data-end=\"1897\">Interest on Education Loan<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"1900\" data-end=\"2088\">\n<li data-start=\"1900\" data-end=\"1951\">\n<p data-start=\"1902\" data-end=\"1951\">Source of Loan (Bank \/ Financial Institution)<\/p>\n<\/li>\n<li data-start=\"1952\" data-end=\"1972\">\n<p data-start=\"1954\" data-end=\"1972\">Name of Lender<\/p>\n<\/li>\n<li data-start=\"1973\" data-end=\"1998\">\n<p data-start=\"1975\" data-end=\"1998\">Loan Account Number<\/p>\n<\/li>\n<li data-start=\"1999\" data-end=\"2018\">\n<p data-start=\"2001\" data-end=\"2018\">Sanction Date<\/p>\n<\/li>\n<li data-start=\"2019\" data-end=\"2036\">\n<p data-start=\"2021\" data-end=\"2036\">Loan Amount<\/p>\n<\/li>\n<li data-start=\"2037\" data-end=\"2068\">\n<p data-start=\"2039\" data-end=\"2068\">Outstanding on 31st March<\/p>\n<\/li>\n<li data-start=\"2069\" data-end=\"2088\">\n<p data-start=\"2071\" data-end=\"2088\">Interest Paid<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"2095\" data-end=\"2187\"><span class=\"ez-toc-section\" id=\"Section_80EE_80EEA_%E2%80%93_Home_Loan_for_First-Time_Buyers_Affordable_Housing\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2104\" data-end=\"2128\">Section 80EE \/ 80EEA<\/strong> \u2013 <em data-start=\"2131\" data-end=\"2185\">Home Loan for First-Time Buyers \/ Affordable Housing<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"2188\" data-end=\"2267\">\n<li data-start=\"2188\" data-end=\"2220\">\n<p data-start=\"2190\" data-end=\"2220\">Same loan details as above<\/p>\n<\/li>\n<li data-start=\"2221\" data-end=\"2267\">\n<p data-start=\"2223\" data-end=\"2267\">Interest claimed under respective sections<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"2274\" data-end=\"2349\"><span class=\"ez-toc-section\" id=\"Section_80EEB_%E2%80%93_Interest_on_Loan_for_Electric_Vehicle_EV\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2283\" data-end=\"2300\">Section 80EEB<\/strong> \u2013 <em data-start=\"2303\" data-end=\"2347\">Interest on Loan for Electric Vehicle (EV)<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"2350\" data-end=\"2462\">\n<li data-start=\"2350\" data-end=\"2395\">\n<p data-start=\"2352\" data-end=\"2395\">Loan and interest details same as above<\/p>\n<\/li>\n<li data-start=\"2396\" data-end=\"2462\">\n<p data-start=\"2398\" data-end=\"2462\">Applicable only if loan is for purchase of an electric vehicle<\/p>\n<\/li>\n<\/ul>\n<h4 data-start=\"2469\" data-end=\"2542\"><span class=\"ez-toc-section\" id=\"Section_80U_%E2%80%93_Deduction_for_Person_with_Disability_Self\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2477\" data-end=\"2492\">Section 80U<\/strong> \u2013 <em data-start=\"2495\" data-end=\"2540\">Deduction for Person with Disability (Self)<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"2543\" data-end=\"2668\">\n<li data-start=\"2543\" data-end=\"2565\">\n<p data-start=\"2545\" data-end=\"2565\">Personal details<\/p>\n<\/li>\n<li data-start=\"2566\" data-end=\"2668\">\n<p data-start=\"2568\" data-end=\"2668\">Disability certificate details <em data-start=\"2603\" data-end=\"2668\">(May include % of disability, nature, and certifying authority)<\/em><\/p>\n<\/li>\n<\/ul>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"Common_Mistake_to_Avoid\"><\/span><span style=\"color: #000080;\"><strong>Common Mistake to Avoid :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Many investors believe, \u201cIf the name has <em>equity<\/em>, it will be taxed like equity.\u201d\u00a0 This is wrong. Only funds satisfying the 65% Indian equity condition get equity taxation.<\/li>\n<\/ul>\n<\/div>\n<h3 data-start=\"2675\" data-end=\"2702\"><span class=\"ez-toc-section\" id=\"Why_This_Matters\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2682\" data-end=\"2702\">Why This Matters<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2705\" data-end=\"2744\">The taxpayer must ensure genuine deduction claims and reduce the scope for incorrect or inflated claims. The taxpayer may be matched with AIS\/lender\/insurer databases and prevent future scrutiny or notices for unsubstantiated claims. it is Actionable Advice for Taxpayers &amp; Professionals<\/p>\n<ul>\n<li data-start=\"2997\" data-end=\"3108\">Start collecting documents NOW (Loan statements, insurance policies, PRAN, disability certificates, etc.)<\/li>\n<li data-start=\"2997\" data-end=\"3108\">Avoid last-minute rush by keeping loan sanction letters and account details ready<\/li>\n<li data-start=\"2997\" data-end=\"3108\">If using ITR utilities with prefill, verify annexure fields and cross-check entries with source documents<\/li>\n<li data-start=\"2997\" data-end=\"3108\">Don\u2019t rely only on Form 26AS or AIS for deduction eligibility\u2014they don\u2019t always capture full details<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key guidance for MF to ensure accurate ITR filings &amp; avoid inflated capital gains reporting due to duplicate entries in the AIS: What is the issue: duplicate mutual fund redemptions in AIS What\u2019s Happening in such a case: During this year\u2019s ITR filing season, a peculiar issue has emerged in the AIS reporting of mutual &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1035],"tags":[1194],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9259"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=9259"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9259\/revisions"}],"predecessor-version":[{"id":9262,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9259\/revisions\/9262"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}