🧾 Taxation of Sale of Equity-Oriented Mutual Funds (RTA Transactions) as per AIS – FY 2024–25
When you sell equity-oriented mutual funds, these transactions appear in your Annual Information Statement (AIS) on the Income Tax Portal, as reported by the Registrar and Transfer Agent (RTA) such as CAMS or KFintech. It is essential to report these correctly in your Income Tax Return (ITR) for FY 2024–25 (AY 2025–26).

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📅 Effective Date for New Tax Rules
From 23 July 2024, the Government of India revised the capital gains tax rates on equity shares and equity-oriented mutual funds.
If your sale or redemption happened on or after 23 July 2024, new rates apply.
For sales before this date, the old rates continue to apply.

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💰 Updated Capital Gains Tax Rates
Short-Term Capital Gain (STCG):
If mutual fund units are held for 12 months or less, gains are treated as short-term.
The tax rate has been increased from 15% to 20% (without any exemption).
Long-Term Capital Gain (LTCG):
If the units are held for more than 12 months, gains are long-term.
Earlier, LTCG above ₹1 lakh was taxed at 10%.
Now, for sales made on or after 23 July 2024, LTCG above ₹1.25 lakh per financial year is taxed at 12.5%.
No indexation benefit is allowed for equity-oriented mutual funds.
 
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🧮 Reporting in Income Tax Return
Report all mutual fund sale transactions under Schedule CG (Capital Gains) of your ITR-2 or ITR-3.
Choose the correct asset type – Equity-Oriented Mutual Fund.
Enter details like fund name, purchase date, sale date, cost of acquisition, and gain amount.
Always cross-check figures in AIS and Form 26AS before filing.
Retain your RTA or CAMS/KFintech statement as documentary proof.
 
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👨‍💼 For Taxpayers under Section 44ADA
If you file your return under Section 44ADA (Presumptive Taxation for Professionals), remember that capital gains are not included in presumptive income.
You must report mutual fund gains separately under the capital gains section in ITR-3.

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✅ Practical Tips
Verify all mutual fund sales appearing in AIS with your mutual fund statement.
Ensure the holding period is correctly calculated to apply the right tax rate.
Mention both purchase and redemption details clearly.
If there’s any mismatch in AIS, review and update using the feedback option on the income tax portal before filing your ITR.
 
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📘 Quick Summary
For sales before 23 July 2024 – LTCG taxed at 10% above ₹1 lakh, STCG at 15%.
For sales on or after 23 July 2024 – LTCG taxed at 12.5% above ₹1.25 lakh, STCG at 20%.
All transactions must be declared in your ITR under Schedule Capital Gains, based on details shown in AIS.