Income Tax on WebNotes

Income Tax on WebNoteshttps://v2.webnotes.in/tags/income-tax/Recent content in Income Tax on WebNotesHugoen-INTue, 19 May 2026 00:00:00 +0000Income tax in Indiahttps://v2.webnotes.in/income-tax-india/Sat, 16 May 2026 00:00:00 +0000https://v2.webnotes.in/income-tax-india/<p><strong>Income tax in India</strong> is the direct tax levied on the income of individuals, Hindu Undivided Families (HUFs), companies, firms, associations of persons, and other taxpaying entities under the <strong>Income Tax Act, 1961</strong>. The Act is administered by the Income Tax Department under the Central Board of Direct Taxes (CBDT) within the Department of Revenue of the Ministry of Finance. Income tax is the principal direct-tax revenue source for the Government of India, contributing approximately Rs 15 lakh crore in gross collections in financial year 2024-25 (corporate and personal income tax combined), representing the largest single component of central-government direct-tax revenue.</p>AIS for mutual fund transactions in Indiahttps://v2.webnotes.in/ais-mutual-fund-india/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/ais-mutual-fund-india/<p>The <strong>Annual Information Statement (AIS)</strong> is a comprehensive tax-information document maintained by the Income Tax Department of India on its Compliance Portal, that aggregates financial transaction data reported by third-party entities under Section 285BA of the Income Tax Act, 1961. For <a href="https://v2.webnotes.in/mutual-fund/">mutual fund</a> investors, the AIS is particularly important because it independently records all mutual fund purchase and redemption transactions, dividend payouts, and SIP instalments reported by RTAs (<a href="https://v2.webnotes.in/cams-mutual-fund-statement/">CAMS</a> and <a href="https://v2.webnotes.in/kfin-mutual-fund-statement/">KFintech</a> ) through SFT-015 (Statement of Financial Transactions, Type 015). Investors can cross-verify their AIS against their RTA statements and <a href="https://v2.webnotes.in/cams-kfin-capital-gains-statement/">capital gains statements</a> before filing an income-tax return.</p>CAMS and KFin capital gains statement for mutual fundshttps://v2.webnotes.in/cams-kfin-capital-gains-statement/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/cams-kfin-capital-gains-statement/<p>The <strong>CAMS and KFin capital gains statement</strong> is a tax computation report generated by the two principal Registrar and Transfer Agents (RTAs) for Indian <a href="https://v2.webnotes.in/mutual-fund/">mutual funds</a> – <a href="https://v2.webnotes.in/cams-mutual-fund-statement/">CAMS</a> (Computer Age Management Services) and <a href="https://v2.webnotes.in/kfin-mutual-fund-statement/">KFintech</a> (KFin Technologies) – that computes the capital gain or loss arising from mutual fund unit redemptions during any specified date range. The statement applies the FIFO (first-in, first-out) method to assign purchase costs to each redeemed lot, segregates gains into short-term capital gains (STCG) and long-term capital gains (LTCG), and optionally applies cost indexation for qualifying debt fund holdings. It is the foundational tax document for mutual fund investors preparing to file an income-tax return.</p>Form 26AS -- TDS on mutual fund dividends in Indiahttps://v2.webnotes.in/form-26as-mutual-fund-tds/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/form-26as-mutual-fund-tds/<p><strong>Form 26AS</strong> is an annual consolidated tax credit statement maintained by the Income Tax Department of India for each PAN holder, showing all Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax payments, and self-assessment tax payments credited against the taxpayer’s account. For <a href="https://v2.webnotes.in/mutual-fund/">mutual fund</a> investors, Form 26AS is relevant primarily because it records TDS deducted by AMCs under <strong>Section 194K</strong> on Income Distribution cum Capital Withdrawal (IDCW) payouts when the cumulative IDCW paid by a single AMC to an investor exceeds Rs 5,000 in a financial year.</p>How to receive and reinvest a dividend on Zerodhahttps://v2.webnotes.in/how-to-receive-reinvest-dividend-zerodha/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-receive-reinvest-dividend-zerodha/<p>A <strong>dividend</strong> is a distribution of a company’s profits to its shareholders, typically declared by the board of directors and approved at the Annual General Meeting (AGM) or Extraordinary General Meeting (EGM). Dividends in India are paid in cash directly to the registered bank account of the shareholder; no action is required from the shareholder to receive a dividend.</p> <p><a href="https://v2.webnotes.in/zerodha/">Zerodha</a> clients receive dividends automatically from the company’s Registrar and Transfer Agent (RTA) via NEFT/RTGS to the bank account linked to their Zerodha demat account. Zerodha does not charge any fee for dividend credit.</p>ITR-ready capital gains statement for mutual fundshttps://v2.webnotes.in/mutual-fund-itr-capital-gains-statement/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/mutual-fund-itr-capital-gains-statement/<p>The <strong>ITR-ready capital gains statement</strong> for <a href="https://v2.webnotes.in/mutual-fund/">mutual funds</a> is a tax computation document generated by Registrar and Transfer Agents (RTAs) – principally <a href="https://v2.webnotes.in/cams-mutual-fund-statement/">CAMS</a> and <a href="https://v2.webnotes.in/kfin-mutual-fund-statement/">KFintech</a> – as well as by the joint portal MFCentral, that calculates the taxable capital gain or loss arising from mutual fund redemptions during a financial year. The statement applies the first-in, first-out (FIFO) method mandated under Indian income-tax rules, segregates gains into short-term capital gains (STCG) and long-term capital gains (LTCG), and presents the output in a format aligned with Schedule CG of ITR-2 or ITR-3. Investors use this document as the primary tax computation input when filing their annual income-tax return.</p>STT on equity-oriented mutual fund redemptionhttps://v2.webnotes.in/stt-mutual-fund-equity/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/stt-mutual-fund-equity/<p><strong>Securities transaction tax (STT)</strong> is a direct tax levied on the value of transactions in specified securities, including units of equity-oriented mutual funds. For mutual funds, STT applies on the redemption of equity-oriented fund units at the rate of 0.001 per cent of the redemption value. It was introduced by the Finance (No. 2) Act, 2004 and is administered under Chapter VII of that Act.</p> <p>STT is a Central Government tax collected at the point of transaction by the AMC (acting as a responsible person), and is credited to the Consolidated Fund of India. It is separate from, and in addition to, <a href="https://v2.webnotes.in/capital-gains-tax-india">capital gains tax</a> on the same transaction.</p>