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                   Joined September 2025
                
               
			  
			  
             
            
             Teh relevant section on gransfathering clause explicitly states that equity mutual funds and bonds can not avail grandfathering , however is silent on debt oriented mutual funds. :- 
https://incometaxindia.gov.in/Documents/Left%20Menu/income-from-capital-gains.htm?utm_source=chatgpt.com
* The Finance (No. 2) Act, 2024 removed the indexation benefit and introduced a uniform tax rate of 12.5% on long-term capital gains. As per the amendment, no indexation benefit is allowed while computing capital gain from long-term capital assets transferred on or after 23-07-2024. However, the Government has introduced a grandfathering provision. This provision allows resident individuals and resident HUFs to still apply indexation on land or building acquired before 23-07-2024 and pay tax at the old rate of 20% if the tax under the new law (i.e., tax calculated at 12.5% without indexation benefit) results in a higher amount.
However, there are some cases where benefit of indexation is not available, which are as under:
 
| Section | Capital Asset | Transferor | 
| Third Proviso to Section 48 | Long-term capital gains arising from transfer of an equity share, or a unit of an equity oriented fund or a unit of a business trust as referred to in Section 112A. | Any Person | 
| Fourth proviso to section 48 | Bonds or debentures. Note: However, indexation benefit is available on two type of bonds, namely,-   •  Capital indexed bonds (issued by the Government)   •  Sovereign Gold Bond (issued by the RBI under the Sovereign Gold Bond Scheme, 2015) | Any person | 
| 112 | Capital gains arising from transfer of unlisted shares (which is taxable at concessional rate) as calculated without giving effect to first proviso to Section 48 | Non-resident | 
| 50A | Depreciable asset (other than an asset used by a power generating unit eligible for depreciation on straight line basis) | Any person | 
| 50B | Undertaking/division transferred by way of slump sale as covered by section 50B | Any person | 
| 115AB | Units purchased in foreign currency as given in section 115AB | Offshore fund | 
| 115AC | Global depository receipts (GDR) purchased in foreign currency as given in section 115AC | Non-resident | 
| 115ACA | Global depository receipts (GDR) purchased in foreign currency as given in section 115ACA | Resident individual - employee | 
| 115AD | Securities as given in section 115AD | Foreign Institutional Investors |