WebApr 15, 2024 · As debt funds are treated as capital assets, capital gain tax is applicable on such funds. If units of a debt fund are sold before completion of 3 years from the date of … WebDebt mutual funds can be used to park money for a day or to remain invested for over longer horizons. In general, it is advisable to use debt funds for a time horizon which is …

Your Queries: Income Tax: Indexation benefit is for long term …

WebAs per the new debt tax rule, purchases of debt mutual funds made on or after April 1, 2024, will be taxed as short-term capital gains at the applicable tax rates, provided that no more than 35 ... WebApr 13, 2024 · The sale of debt mutual fund units does not fall under Section 111A. Therefore, it is subject to tax as per the slab rates. Mr Shah’s tax liability is a factor of his gross income i.e., a sum of his annual income and profit on the sale of debt mutual fund units. The entire gross income will be subject to tax as per the applicable slab rate. green grass international school logo

Taxability of Mutual Funds: Tax Implications of Mutual Fund …

WebApr 5, 2024 · The taxation of debt mutual funds is as follows: a. Short-Term Capital Gains Tax STCG on debt mutual funds is taxed at the investor’s income tax slab rate. b. Long-Term Capital Gains Tax LTCG on debt mutual funds held for more than three years is taxed at 20% with indexation. c. Dividend Distribution Tax WebMar 24, 2024 · If a debt fund is held for more than 3 years, the investor pays long-term capital gains tax at 20 per cent with indexation benefit while interest from the fixed deposit is taxed as per one's... greengrass lawn care broken arrow ok