Filing Income Tax Returns (ITR) is your federal duty if you earn an income in the financial year exceeding Rs. 2.5 lakh. When mutual fund tax filing your returns, you have to declare incomes earned from various sources. If you have made specific investments that earn you tax deductions from tax on mutual fund dividends or exemptions, the same should be declared in the ITR.
Mutual fund investments also give you tax benefits if you choose the ELSS schemes. Moreover, when you redeem your investment and gain profit or suffer a loss, the same should also be reported on your tax return. Let’s understand how to declare mutual fund investment in ITR and the mutual fund tax implications.
Declaring Tax-Eligible Mutual Fund Investment
Equity Linked Saving Schemes, or ELSS, are equity-oriented mutual fund schemes with a distinct tax advantage. Investment into these schemes allows you a deduction from your taxable income to the tune of Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961, that you may declare under the heading ‘Chapter VI A deductions’ in your ITR.
Declaring Capital Gains on Mutual Fund Redemption
Whenever you redeem your mutual fund investments, any profit or loss incurred is termed as capital gain or capital loss, respectively. The detail of such gains or losses should also be declared in your ITR for tax on mutual fund redemption.
However, before jumping on how to declare capital gains tax mutual funds, here’s a quick look at how the gains are taxed:
In the case ofequity mutual funds, gains earned within 12 mth are called short-term capital gains. Such gains are taxed at 15%. On the other hand, gains earned after 12 mth are long-term capital gains. Such gains are tax-free up to Rs. 1 lakh, and gains exceeding the limit are taxed @10%.
In the case ofdebt mutual funds,gains earned within 36 mth are called short-term capital gains. They are taxed at your income tax slab rates. However, gains earned after 36 mth are called long-term capital gains. They are taxed at 20% with indexation, a process through which an asset’s acquisition cost is inflated/adjusted to bring it at par with current rates, taking inflation into account.
How to Declare Capital Gains from Mutual Funds?
Now that you know how mutual fund gains are taxed and filing ITR for capital gains, it’s time for step two, which is how to declare mutual fund investment in ITR.
Since mutual fund returns are called capital gains, they are recorded under the heading ‘Income from capital gains.’ You need to mention the amount of gain incurred and the respective tax liability and tax treatment for mutual funds.
Similarly, losses on redemption should be declared as capital losses under the same heading. You can use the losses to set off the profits earned from other mutual fund investments.
When calculating the amount of capital gains, you can deduct the brokerage paid to your mutual fund distributor or broker, if any, from the gains incurred.
Setting off of Capital Loss from Gains on Redemption of the Fund
If you have incurred a capital loss in the financial year, then on redeeming your mutual fund investments, you can use the loss to offset the profits earned on another scheme. This set-off is allowed in the same financial year as well as for eight subsequent financial years. To offset your capital losses against gains and reduce your subsequent taxation on mutual funds, you should file your ITR with the income tax department within the due date. Failure to do so would not allow you to carry forward your losses for set-offs from future capital gains statement for ITR.
Here are the rules of setting off losses against gains:
Short term capital loss can be set off against either short term or long term capital gains
Long term capital loss can be set off only against long term capital gains
ITR Form 2
You would have to file your returns in ITR Form 2 if you have:
Capital gains or losses from a mutual fund redemption
You are a salaried taxpayer or a Hindu Undivided Family (HUF)
In this ITR form for mutual funds filing capital gains in ITR, the details of the capital gains or losses suffered would have to be mentioned.
Suppose you incur capital gains or losses from an equity mutual fund on which Securities Transaction Tax (STT) has been paid. Then, in that case, you need to mention the individual details of every mutual fund scheme redeemed.
You will also need to fill out Schedule 112A for each scheme that you have redeemed in a financial year and on which you have earned a capital gain or loss.
Conclusion
If you have invested in tax-saving ELSS schemes, you may claim a tax deduction when you declare your investment in your mutual fund Income Tax Returns (ITR). Moreover, any gains or losses incurred on redeeming an existing mutual fund investment should also be declared in the ITR for filing tax on mutual fund dividends. Understand thoroughly how to declare mutual fund investment in ITR so that you can comply with the rules of filing ITR for mutual funds and avoid penalties. Also, file your return on time to fulfil your duty and carry forward your losses to subsequent financial years if you have any.
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The Cabinet approves the PM Dhan-Dhaanya Krishi Yojana, a new scheme aimed at boosting farming in 100 low-performing agricultural districts across India.
The scheme commences in FY26 and will run for six years, with an annual budget of Rs 24,000 crore, covering 1.7 crore farmers.
Thirty-six existing schemes from 11 ministries will be merged to ensure better coordination and impact at the district level.
At least one district from each state will be selected, focusing on areas with low farm output, limited crop diversity, and poor access to credit.
Focus areas include improving productivity, promoting crop diversification, constructing storage facilities, expanding irrigation systems, and enhancing access to credit.
Modelled after the Aspirational District Programme, the scheme will also feature a mobile app to provide farmers with key updates and guidance.
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In a financial world where unicorns dazzle and digital platforms disrupt, it’s rare for an old lion to step forward with such quiet confidence. Yet this year, Tata Capital, the financial services arm of the 156-year-old Tata Group, is doing just that — preparing to make its public debut with a ₹17,200 crore (approx. $2 billion) Initial Public Offering (IPO).
If all goes according to plan, this could be India’s biggest IPO of 2025 — and one of its most consequential in a decade.
But the real question is not whether the Tata Capital IPO will make headlines.
It already has.
The real question is: Should you invest in it?
A Titan Steps into the Spotlight
Tata Capital, until now a powerful but privately held arm of India’s most respected business house, is set to join the stock market club — and its arrival is nothing short of seismic. Having built a ₹2.2 lakh crore ($26.4 billion) loan book and a digital-first lending ecosystem, it straddles the old and new worlds with rare poise.
It’s not just another NBFC (non-banking financial company); it’s the financial soul of the Tata Group — embedded in everything from retail lending to green infrastructure finance.
Its IPO is more than a capital raise. It’s a declaration of intent: India’s financial future will be built by those who understand both trust and technology.
Tata Capital IPO Details: Unfolding a ₹17,200 Crore Play
SEBI, India’s securities regulator, has given the green light for Tata Capital’s confidential DRHP. While the exact Tata Capital IPO date hasn’t been formally announced, sources suggest an August 2025 listing.
IPO Size: ₹17,200 crore
Fresh Issue: A small portion — likely to strengthen regulatory capital
Offer for Sale (OFS): Majority stake sale by Tata Sons (the promoter)
If priced right, it will likely command a P/E multiple of 25–28x and P/B of 8–10x, according to analysts tracking the grey market.
The India Context: Why This IPO Matters
India’s capital market ecosystem has undergone a silent revolution. Over the past five years:
Retail investors have exploded from 30 million to 110 million.
Trading volumes have surged, driven by mobile-first platforms like Zerodha and Groww.
SEBI reforms, T+1 settlements, and digital KYC have made investing more democratic than ever.
And yet, despite this digital wave, there’s been a void in the middle. The fintechs are nimble, but shallow. The public sector banks are wide-reaching, but slow. Private NBFCs are often ambitious, but capital-starved.
Tata Capital sits right at the intersection of scale, trust, and speed.
This IPO, then, is not just about a company listing — it’s about an institution joining the race to define India’s financial future.
Business Model of TATA Capital IPO
Tata Capital operates across the lending spectrum:
Retail Loans: Personal, home, auto, education
SME Lending: Working capital, equipment finance
Commercial & Infra Finance: Especially renewable energy
Wealth Management: Through Tata Capital Housing and Securities
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What makes TATA capital IPO share price stand apart?
Digital Muscle: 98% customer onboarding is fully digital.
AI-Powered Decisions: Loan origination, risk scoring, customer servicing — all powered by algorithms.
Brand Power: With Shubman Gill as its ambassador and Tata’s legacy backing it, the customer recall is enormous.
And with 1,496 branches nationwide, it is not just online-first. It is omnichannel-first — and that could be a secret weapon in underbanked India.
Focusing on Green Finance & Sustainability
Tata Capital isn’t just another lender — it’s a strategic capital provider for India’s energy transition. Through its CleanTech vertical:
It has financed 17+ GW of renewable energy projects.
Helped avert 27 million tons of CO₂ emissions (as of FY24).
It aims to become a market leader in green bonds and ESG-aligned lending.
Financial Performance TATA capital
Tata Capital’s FY25 numbers are solid — not outrageous like a startup, but reassuring like a bank you’d trust.
Metric
FY24
FY25
Book Size (AUM)
₹1.58 lakh Cr
₹2.22 lakh Cr
PAT
₹3,150 Cr
₹3,665 Cr
ROE
17.6%
~10.6% (due to capital infusion & provisioning)
NPA (Gross)
~1.7%
~2.3%
Customer Base
4.5 million
7+ million
Yes, NPAs have ticked up, but that’s largely due to aggressive SME expansion and merger with Tata Motors Finance — not mismanagement.
TATA capital IPO Valuation & Peer Comparison
Compared to listed peers:
Company
P/E
P/B
ROE
Bajaj Finance
35x
6x
11.4%
L&T Finance
18x
2x
11%
Muthoot Finance
20x
2.5x
13%
Tata Capital (Est.)
~28x
~8–10x
~11%
The valuation premium Tata Capital may command is justified — for its brand equity, distribution scale, digital stack, and parentage.
Scenario-Based Tata Capital IPO Valuation
To help investors visualize upside/downside potential, here’s a Bull/Base/Bear scenario analysis for Tata Capital’s valuation and expected returns by FY27 (2 years post-listing):
Scenario
AUM CAGR
PAT FY27 (₹ Cr)
P/E
Valuation (₹ Cr)
IRR (from IPO @ ₹60K Cr)
Bull
25%
6,200
28x
₹1.74 lakh Cr
~65% CAGR
Base
18%
5,000
20x
₹1.00 lakh Cr
~28% CAGR
Bear
12%
3,700
14x
₹51,800 Cr
~–7% (loss)
Why the TATA capital IPO Is a Turning Point
The proceeds from the IPO aren’t just going into a bank account. Tata Capital plans to:
Strengthen capital adequacy for future growth
Expand its green lending portfolio (over 17 GW of clean projects financed)
Invest further in AI, automation, and underwriting engines
Possibly look at inorganic acquisitions in wealth-tech or fintech
This is a company preparing not just for a stock listing — but a financial marathon.
The Risks factors in Tata capital financial services limited IPO
Let’s not paint too rosy a picture.
Regulatory Headwinds: RBI could tighten NBFC norms, raising capital requirements or provisioning standards.
Asset Quality Pressure: Aggressive SME & affordable housing play could lead to delinquencies.
Interest Rate Cycles: Margin compression is a real threat if borrowing costs rise.
Tech Disruption: As fintechs get bolder, Tata Capital must constantly innovate to stay relevant.
But unlike flashy tech IPOs, Tata Capital’s risks are measured and known — not speculative.
Investor Sentiment: Red Hot
Unlisted shares of Tata Capital are already trading at approximately ₹900 and ₹1,050 in the grey market, implying a valuation well above ₹1 lakh crore. Institutions are circling. FPIs are interested. Mutual funds are expected to pile in as anchor investors.
Over all, broader market mood is also bullish and many IPOs are already in the market that are oversubscribed and listed in premium in the exchanges.
With the Tata name and the market mood aligning, over subscription is all but guaranteed.
Should You Invest in TATA Capital IPO?
Let’s break it down to understand if one can consider investing in TATA Capital IPO share, both pros and cons.
Invest If:
You want to own a long-term compounder with brand strength
You missed the Bajaj Finance ride and are looking for the next best thing
You believe in India’s consumption, credit, and capital market growth stories
Hold Back If:
The IPO is priced at absurd P/E > 35x
Broader markets are in correction mode
You’re purely chasing short-term listing gains
The Bigger Picture of Tata capital financial services limited IPO
Tata Capital’s IPO is more than just a ₹17,200 crore issue. It marks a generational moment — the passing of the baton from legacy to public.
It’s the signal that India’s financial backbone is no longer confined to the old walls of Bombay House. It’s ready to walk Wall Street, Bay Street, and Dalal Street — all at once.
As India’s middle-class surges, as credit demand explodes, as savings move from FDs to funds — Tata Capital is not just joining the race. It’s here to lead it.
Tata capital IPO News
Tata capital IPO has been in news since it has applied for IPO. Tata capital filed confidential IPO documents or DRHP with market regulator SEBI for IPO processing. Though TATA capital is not the first company to file confidential IPO papers, it is one of the companies to do it. Tata Play (formerly Tata Sky) a company of tata group was the first Indian company to file confidential IPO papers in India.
Disclosure: The author is not a SEBI registered research analyst and does not hold any stake in Tata Capital. Discuss with your financial analyst before investing in the IPO.
Nvidia CEO Jensen Huang has sold shares of the chipmaking giant worth approximately $36.4 million, further trimming his holdings in the company he co-founded. The move comes as Huang’s soaring net worth places him in close proximity to legendary investor Warren Buffett in global wealth rankings.
According to CNBC reports, the latest transaction involved 225,000 shares and was part of a broader trading plan adopted in March, which allows Huang to sell up to six million shares of Nvidia through the end of 2025.
He had earlier sold a separate tranche in June worth around $15 million under the same arrangement.
Last year, Huang had divested nearly $700 million worth of shares under a similar prearranged plan. Following the most recent disclosure, Nvidia shares rose by about 1% in Friday trading, CNBC reported.
The tech executive’s wealth has surged alongside Nvidia’s meteoric rise as a leader in the artificial intelligence hardware space. The company’s GPUs have become indispensable for training and running large language models, fueling massive demand from both enterprises and investors.
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As per CNBC, Huang’s net worth has jumped by over $29 billion just in 2025 so far, marking a gain of more than 25%. Bloomberg’s Billionaires Index estimates his fortune at $143 billion, placing him nearly neck and neck with Berkshire Hathaway chairman Warren Buffett, who stands at $144 billion.The company itself has hit record-breaking milestones in recent months. CNBC noted that Nvidia became the first U.S. firm to cross a $4 trillion market capitalization earlier this week, surpassing tech giants Microsoft and Apple in the process.Despite his ongoing stock sales, Huang continues to hold over 858 million Nvidia shares, both directly and indirectly through various partnerships and trusts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
