The Finance Ministry on Friday March 23, 2023, brought in amendments to the Finance Bill to make taxation on debt mutual funds on par with Fixed Deposits.
From April 1, 2023, all gains from debt Mutual funds irrespective of the holding period will be taxed as short term capital gains at each individual investor’s applicable tax rate.
The indexation benefit applicable on long term capital gains is also removed.
The move opens up a limited time window of investment opportunity in debt funds till March 31, 2023 to benefit from tax efficiency in a scenario when the interest rates have moved significantly higher over the last one year.
Starting April 1, 2023, debt mutual funds will lose their tax advantage vis-à-vis the traditional fixed deposits that may lead to investors opting for fixed deposits or hybrid mutual funds to gain exposure to debt asset class.
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With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
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