Finance Bill 2023 introduced by FM Nirmala Sitharaman has proposed that investments in mutual fund where not more than 35 percent is invested in equity shares of Indian company i.e. debt funds, will now be deemed to be short-term capital gains.
As per the proposal debt funds held for more than three years will no longer enjoy indexation benefit.
Budhe-Baba wrote:
Any idea when should long term debt fund be preferred over FD?
Long term debt funds are for goals 10+years and funds you don't need until long years can be parked. Fds income is taxable every year and is suitable for short to medium term
pentagon4tw714 wrote:Long term debt funds are for goals 10+years and funds you don't need until long years can be parked. Fds income is taxable every year and is suitable for short to medium term
Ok but for 10+ years, why prefer debt-gilt funds over equity funds?
Any good index fund to invest before 1st April?
I'm a noob to this.
22sumit wrote:Even if you invest before 1st April after withdrawal consider for tax as per your tax slab as withdrawal taken after April 1st.Any good index fund to invest before 1st April?
I'm a noob to this.
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He invests in fd @ 7% interest for 3yr
Total return after 3 yr ~22%
Tax on that @ 30% = 6.6%
Net return from fd in 3yr = 15.4%
Now, instead of fd he invests in debt fund for 3yr @ 7% yield (fixed maturity product)
Total return after 3 yr ~ 21%
Indexation benefit = 18% ( assuming 6% inflation)
Tax @ 20% on rest = (21-18)*0.2 = 0.6%
Net return from debt in 3yr = 20.4%
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.
Yeah. It came out around noon.
More like a way to recapitalise banks. Inflows to FDs would increase substantially.