What is the tax legal responsibility of a senior citizen’s revenue from SWPs?

Q- My spouse has invested ₹6 lakh every in 4 mutual funds in August 2021. As per the Systematic Withdrawal Plan (SWP), she is getting ₹4,250 per 30 days from every mutual fund. As a senior citizen, this quantity will take her complete revenue to greater than ₹3 lakh. Can you please inform me what can be her tax legal responsibility out of those SWPs? – Shevde.

The relevant tax price on the entire revenue, together with dividend revenue from mutual fund SWP, could be decided based mostly on the revenue tax slabs as relevant to your spouse. Such tax computed could be additional elevated by well being and schooling cess at 4%.

Assuming that your spouse is a resident Indian senior citizen i.e. she is 60 years of age, having a internet complete revenue of as much as ₹5 lakh, she could be eligible for rebate below Section 87A of the IT Act and as such there is probably not any tax legal responsibility.

Answered by Dr. Suresh Surana, Founder, RSM India. Send your queries at mintmoney@livemint.com.

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