W.E.F 1st April,2015, the special taxation @ 10% on M.F. units (debt schemes) has been proposed to be removed (as per proposed amendment in section 112)and tax will now be 20% and period of holding will also be 3 years.
The sad part is, those who invested in FY 13-14 for one year or who invested in FY 12-13 for two years with 10% taxation in mind, will also have to pay 20% tax on the income on maturity in FY 14-15.
Investors have been taken for a ride. There should have been a provision to spare those who already invested before budget to allow them to pay tax @ 10%.
Hope, experts would like to comment.
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