Indexation & LTCG Benefits on Debt Mutual Funds!

FY 24 Budget amendment Is proposing that any capital gain made on investments made after April 1, 2023 in Non Equity MFs ( Funds which have more than 35 % investment in debt ) will not be eligible for Long Term Capital Gains benefits.


Gains from Debt MFs on investments made after April 1,2023 will only have Short Term Capital Gains taxable at slab rates as applicable irrespective of the holding period.


Please note all investments made before March 31,2023 will continue to enjoy LTCG and Indexation benefits.



Recommendation: Clients to Invest via Fixed Income Investment allocation before March 31,2023 to take advantage of LTCG and Indexation.


Read More: Most popular tax-saving investments before 31st March 2023


Existing Investments in fixed income fund should be continued as Long as possible as it will attract concessional LTCG tax rate.


Current proposal needs to be approved by the Parliament for becoming law.