Income Tax on Debt Mutual Funds

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This query is : Resolved

Quick Summary

Following the Finance Bill 2023, the indexation benefit for debt mutual funds has been removed. For investments made before April 1st, 2023, gains are now taxed at slab rates, not at 20% with indexation or 10%.

Amshumali Sharman

Amshumali Sharman (Querist)
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12 March 2024 Hello,
Since the indexation benefit has been removed vide the Finance Bill, 2023, is the indexation benefit applicable to debt funds purchased before 1st April, 2023 and the gain taxable @ 20%?Or is it taxable @ 10%/the slab rates?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 March 2024 it will be taxable at slab rates. this article should be helpful for different scenarios - https://cleartax.in/s/different-mutual-funds-taxed

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Amshumali Sharman

Amshumali Sharman (Querist)
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12 March 2024 Understood. Thanks for the response.

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