Preparing Consolidated Capital Gain Reports using Funds India data
In this article, I will explain how you can download data from fundsindia website to prepare your Indian tax return.
- Download data
- Understand data
- Prepare capital gain summary
- Compute your capital gain tax
Q1) I use a CA for preparing my taxes. What should I do?
Funds India has updated their system to generate two type of Capital Gain reports. (updated in June 2016). The format of both of them are slightly different.
If you are not sure which one you need, You can get both and send to your CA. Downloading the report is very easy.
Read and follow the procedure in first part of this article – Download Data. Rest is not applicable to you.
Q2) I do my Indian taxes myself. How can I use the data?
Here is a step by step procedure for Preparing Consolidated Capital Gain Reports using Funds India data.
Keep this printed and login to funds india website and follow step by step all the instructions.
1) Download Data
You can generate consolidate capital gain statement for all mutual funds in fundsindia site.
Reports >> Capital Gain Reports
Select holding combination
Select financial year ( for filing tax return in July 2016, select financial year as 2015-2016 )
Press Submit button
This will generate an excel file, in few seconds and you can download the file immediately.
You might need to generate more than one file depending on the holding combination of your mutual fund schemes.
Usually it is recommended the first holder of the scheme be responsible for taxes that arise from the scheme that are held jointly.
Hence if you have holdings like below :
1) husband alone
2) wife alone
3) husband and wife
4) wife and husband
Download 4 capital gain files in the above format, and combine #1 and #3 files for husband tax return and combine #2 and #4 for wife tax return.
2) Understand Data
The downloaded excel file has two sheets.
Summary Sheet has following columns,
- AMC name
- Folio id
- Scheme name
- Scheme type
- Realized short-term purchase Amount (Rs.)
- Realized short-term Redemption Amount (Rs.)
- Realized short-term gains (Rs.)
- Realized long-term purchase Amount (Rs.)
- Realized long-term Redemption Amount (Rs.)
- Realized long-term gains (Rs.)
- Unrealized short-term gains (Rs.)
- Unrealized long-term gains (Rs.)
Your summary page will look like this.
3) Prepare capital gain summary
1) First, Delete columns 11 and 12. (K &L in excel )
We don’t need to pay any taxes for unrealized gains. Why is this included in the report ? This data is useful for future tax planning. But not useful for computing taxes.
2) AMC name and Folio ID are not needed. Ignore them.
3) Rearrange the lines into two blocks, based on Scheme Type.
- All other types
Indian tax system divides the mutual fund scheme types into two groups. Equity funds are taxed favorably compared to Non-Equity funds.
Foreign funds need special consideration – You might notice some of the foreign funds are designated by fundsindia as equity funds, but you have to move them to second block (all other type). Funds India classify them based on the portfolio holdings. But indian tax regulation does not extend the special tax status given to indian equity funds to foreign equity funds in the same way.
After grouping the schemes into two blocks, add Total lines for each block and total the columns, E-G (short term gains ) and H-J (long term gains).
You will have a page that looks like this.
4) Compute your capital gain tax
1) G25 is short term capital gains for non-equity. Green colored. Rs.39,109 this is added to your income and taxed at marginal tax rate.
2) J25 is long term capital gains for non-equity. Blue colored. Rs.4,67,558 is taxed at 10% without indexation or 20% with indexation. Assuming you are opting for 10% without indexation, the tax would be Rs.46,756.
3) G30 is short term capital gains for equity funds. Yellow colored. Rs.15,000 is taxed at 15% at specified special rate. Tax is Rs.2,250.
4) J30 is long term capital gains for equity funds. Orange colored. Rs.1,23,294 is taxed at 0%. No taxes, since STT is paid.
To learn more about Indian mutual funds and taxation, please refer to :