How to show SWP withdrawals in my accounts

If you withdraw any amount through SWP after 12 months from your investments in equity mutual funds or balanced fund, the capital gains arising from these withdrawals will be totally tax free.

You will have to show this in your ITR but need not pay any taxes as long term capital gains tax is free for equities, equity and equity oriented mutual funds.

In your balance sheet your investment of Rs 5 Lakhs will be shown in the asset side in the first year. However, from the next year onwards, the amount of Rs 5 Lakhs will be reduced by the extent of withdrawal during the years. in your balance sheet, the withdrawals will be shown as income.

Thanks for writing to Advisorkhoj.