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What is the tax liability of a senior citizen’s income from SWPs?


Q- My spouse has invested 6 lakh each individual in 4 mutual cash in August 2021. As for every the Systematic Withdrawal Approach (SWP), she is acquiring 4,250 for each month from every single mutual fund. As a senior citizen, this volume will acquire her full cash flow to more than 3 lakh. Can you remember to inform me what will be her tax liability out of these SWPs? 
– Shevde.

The applicable tax rate on the total earnings, which includes dividend profits from mutual fund SWP, would be established based mostly on the income tax slabs as applicable to your spouse. These types of tax computed would be additional elevated by overall health and schooling cess at 4%.

Assuming that your spouse is a resident Indian senior citizen i.e. she is 60 several years of age, getting a net full earnings of up to 5 lakh, she would be eligible for rebate beneath Area 87A of the IT Act and as this kind of there might not be any tax legal responsibility.

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

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