Finance Minister removes income tax benefit from debt mutual funds, how will investors and AMC be affected?
Debt Mutual Funds: The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains.
Debt Mutual Funds: The Lok Sabha today, March 24, approved changes to the Finance Bill, 2023, in which Finance Minister Nirmala Sitharaman eliminated the long-term capital gain tax benefit enjoyed by debt mutual fund investors. The modifications provide that debt funds that invest less than 35 per cent in equity shares will be taxed at the income tax bracket level and will be considered short-term capital gains. Similarly, bank fixed deposits are taxed.
Anil Singhvi shares his top wealth creation picks, expects two of them to double!What should investors do with debt mutual funds?
Vijay recommended holding the funds and whenever investors need money, they can withdraw in parts.
He suggested examining the portfolio after April 1 and if the tax is high, stop Systematic Investment Plan (SIP) on debt mutual funds and invest in other funds through SIP.
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