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What is the tax liability of a senior citizen’s income 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 earnings to greater than 3 lakh. Are you able to please inform me what will likely be her tax legal responsibility out of those SWPs? 
– Shevde.

The relevant tax charge on the whole earnings, together with dividend earnings from mutual fund SWP, can be decided primarily based on the earnings tax slabs as relevant to your spouse. Such tax computed can 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 web complete earnings of as much as 5 lakh, she can be eligible for rebate underneath Part 87A of the IT Act and as such there might not be any tax legal responsibility.

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

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