Explanation
Section 194F of IT Act 1961 (TDS at 20% on repurchase of mutual fund/UTI units) was repealed by the Finance Act 2019 with effect from 1 September 2019. After repeal, no TDS is deducted at source by the mutual fund at the time of redemption. The investor must compute capital gains (LTCG or STCG based on holding period) and include it in their ITR. Debt mutual funds purchased after 31 March 2023 are taxed at slab rates under 'Income from Other Sources' — not as capital gains. Under IT Act 2025, this section is omitted entirely. Verify on the income-tax portal before filing.