New Mutual Fund rules getting applicable from 1 April 2023. Check details2 min read 24 Mar 2023, 09:19 AM IST
Debt funds held for more than three years will no longer enjoy indexation benefit
In a major setback for Mutual Fund (MF) investors, the government may do away with the long term capital gain (LTCG) tax benefit benefits that a debt fund mutual investors enjoy. According to the proposed amendments, in the Finance Bill 2023, investment in mutual fund where not more than 35 percent is invested in equity shares of Indian company will now be deemed to be short-term capital gains. This will apply to investments made on or after 1 April 2023. Currently, investors in debt funds pay income tax on capital gains according to the income tax slab for a holding period of three years. After three years these funds pay either 20% with indexation benefits or 10% without indexation.
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