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Debt mutual fund tax change: Throwing out the baby with the bath water 

The amendment to the finance bill fails to address the larger issue of varied capital gains tax liability across different assets, creating more confusion

March 27, 2023 / 12:54 PM IST
Debt mutual fund tax change: Throwing out the baby with the bath water 

Highlights Gains on debt funds can no longer be classified as long term regardless of holding period, and, hence, lose out on indexation benefits   Amendment to Finance Bill 2023 affects other unrelated schemes like gold funds and international equity funds among others  The confusing variety of long-term capital gains tax around different asset classes remains unaddressed  The attempt to reduce tax arbitrage between bank fixed deposits and debt mutual funds has created more arbitrage, further confusing investors  HNIs will rethink allocation as they seek...

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