Finance Bill Proposes Removal Of Tax Advantage For Debt Mutual Funds

Debt mutual funds, which so far enjoyed taxation benefit as long-term capital gains (LTCG) were taxed at 20% with indexation benefit, stand to lose this advantage from 1 April 2023. The Finance Bill has proposed some amendments. One such amendment is investments in mutual funds with up to 35% equity exposure to domestic companies, essentially debt funds, are liable to be taxed as per the investors’ income tax slab rate. What should debt mutual fund investors do? Know full details on the news from Nupur.