If i were to redeem my equity mutual fund today i.e on 30th March 2022, it would obviously take a few days for the funds to be transferred in my account. In other words the redeemed funds will appear in my bank account in the next financial year.
My question is in which financial year should i show the capital gains from the redemption? Does my tax liability arise in the current financial year 21-22 or the next financial year 22-23?
The relalisation would be considered for FY 21-22 (AY 22-23).
Thank you for taking time to reply. Does it mean date of redemption transaction is considered to determine which year you become liable to pay tax rather than date when funds are credited to your bank account?
Yes date of redemption is considered. But there may be some problem if the mutual fund delays in redeeming from your account. Only if redemption is processed from AMCs end then it will be reported in FY21-22, otherwise it should be reported next year. Kindly make an enquiry with your AMC about redemption processing time.