No LTCG Tax Benefit on Debt Mutual Funds from April 1, 2023 onwards
Five Things you should know...
From April 1, 2023, income from mutual funds investments with less than 35% exposure to equity, will be considered as a short term capital asset, irrespective of the holding period. Income from such funds will be treated as short-term capital gain and taxed at the investor’s slab rate.
Fact 1:
Debt Mutual Funds are no longer tax efficient than Fixed Deposits
Fact 2:
No Indexation benefit for debt mutual funds.
Fact 3:
Investments in Market Linked Debentures (MLDs) will be considered as short term capital assets.
Fact 4:
Capital gains from hybrid funds, gold funds (Gold ETFs), international funds, and funds of funds (FoFs) that do not invest more than 35% in equity will also be classified as short term capital assets.