No indexation benefit for Debt funds held for more than three years

No warning, no notice. Govt. wants to milk out citizens. 

Every year or two they change the rules, then How ppl will plan their retirement savings. 

aache din

High salaried persons used to save a lot using debt funds now rip that plan the way its going soon there will be no way u can reduce taxable income u either pay tax or don't no middle ground no tax planning

f

@Ramta_Jogi

Noob query

Can we utilize this week to invest in debt funds as this will be applicable from 1st apr?

Earn money - Pay tax on it.

Spend money - Pay tax on it.

Invest money to grow it - Pay tax on the amount earned.

What's next?

A running NFO of a dynamic asset allocation fund by quant had their emergency meeting just after the declaration and switched from debt to equity+derivatives hedging... smart!

One can check their new offer PDF here, so industry is reacting accordingly... 

This is the revised communication I was speaking about: @rogerthat

Dear Investors,

Greetings from quant Mutual Fund! 
As you are aware from our previous communications, our New Fund Offer of quant Dynamic Asset Allocation Fund (quant DAAF) is currently underway. The fund enjoys a wide flexibility to rebalance the portfolio between equity, debt, and derivatives depending on our view on Risk-on or Risk-Off environment.
 
The fund was initially intended for risk-averse investors, with an equally low risk appetite for volatility, preferring fixed income returns. Therefore, the scheme was endeavoring to deliver superior returns than fixed deposits with a high quality debt oriented portfolio. We had illustrated in our previous communications that quant DAAF would benefit long term investors by rendering the difference between debt and equity taxation to an insignificant 66 basis points (0.66%) over a five years holding period, due to indexation benefit on long term capital gains. These projections were made on the basis of the prevailing Income tax rates.

Today, the Parliament passed the Finance Bill, 2023 along with certain amendments. The most significant amendment was the withdrawal of the benefit of indexation on long term capital gains on debt mutual funds for investments made on or after April 1, 2023. From April 1, 2023, debt mutual fund schemes will be taxed at Income tax rates applicable to an individual’s income tax slab. This has significantly affected our earlier positioning and consequently the strategy of quant DAAF from a taxation perspective.
 
In view of this impact, and in the larger interest of our investors, quant AMC has unanimously decided to reposition the quant DAAF and modify its taxation from debt to equity due to said amendments to the Finance Bill, 2023. Therefore the amended investment strategy of quant DAAF, superseding our previous communication, stands as:-

The unique feature of the scheme stems from its mandate to dynamically rebalance equity exposure (0 to 100%) and debt exposure (0 to 35%), in line with our view on Risk-On or Risk-Off environment, to earn superior risk-adjusted returns. quant money managers have full flexibility and can even hedge up to 100% equity exposure by using derivative instruments in extreme risk-off environment.

quant DAAF aims to capture upside in the bull phase and limit the downside in the bear phase and thus reduce the volatility of the overall portfolio.

Even under its newly repositioned avatar, the product is positioned towards traditional investors. In line with our dynamic style of money management, quant DAAF portfolio will be managed dynamically in line with our Risk-On or Risk-Off view on macro environment. Investors can expect to benefit from our VLRT Framework which is an overarching framework for all our funds.

Vote for BJP....

This is what I think: government wants everyone to enroll into new tax regime. Which simply states, just tell me your income, pay tax and done. Rather than showing 100 proofs of different investments/expense, half of them being fake. Hassle for tax payer, opportunity for corruption for ITO. Simplified tax model would save hundreds of hours for both tax payer and ITO. Tax evasion becomes difficult in a nutshell. However, most of the people who save tax happily by investing in these schemes and are legitimate and transparent with their income, are at loss. I do like the old tax regime myself, but I think this might be a long term plan. Now unless the benefits come back in terms of other forms of tax relaxations, this all would seem useless to a regular person.

Tax on everything

After watching numerous documentaries and reading books, i have come to conclusion that government as an entity is a scam, a sham in lot of countries, including india, usa, china, Russia. Not just in North Korea, shrilanka, Pakistan etc.

And government's primary job is to keep majority population in illusion, isolated from the reality, while enslaving the masses.

Their modus operandi or strategy is different in different parts of the world but all play the same game.

It sounds crazy or funny or ridiculous but it resembles the movie matrix where humans are treated as resource while showing la la land in their dreams.

And i am not into drugs or hallucinating to say this .

For anyone interested to invest before 31st, below are few pointers based on my findings.

1. Long term debt - Gilt funds- icici gilt and SBI gilt fund

2. Medium term - Dynamic bond fund - UTI dynamic bond, ICICI all seasons

3. Short term - icici short term

Any good index fund to invest before 1st April?

I'm a noob to this.