Finance Bill 2023 Amendment: Debt funds are suggested to be taxed at the same rate as FDs

Finance Bill 2023 Amendment: Debt funds are suggested to be taxed at the same rate as FDs.

Presently, one of the most compelling reasons to invest in debt funds is the tax benefit they provide over fixed deposits.

[{"selector":"#anim-6045a329-3e8b-4c96-9068-6ded498668e7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.105427357601002e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The Finance Bill 2023 includes an unexpected modification that classifies capital gains from debt mutual funds as merely short-term capital gains.

[{"selector":"#anim-03d69384-4180-4c7b-a478-e93210ddec31 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.105427357601002e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Gains from debt mutual funds will be added to your taxable income and taxed at your marginal tax rate.

[{"selector":"#anim-b582f963-f696-40f3-abbb-f09d3bdd28b6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.105427357601002e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]