Tax on debt mutual funds purchased in 2019

Taxation
1

I had purchased some debt funds in 2019 and first half of 2020. Those were sold towards end of 2024.

CAMS seems to be confused about the amount of capital gains. The statement that I downloaded from CAMS soon after selling those (in Oct 2024) was based on the indexed cost. When I downloaded the capital gains statement from CAMS recently, it was NOT based on the indexed cost.

Can somebody please help me understand the tax liability here?

2

The gains will be at flat 12.5% without indexation (Fy2024-25)

see this, my old topic
Has Debt Mutual Funds been nuked by Budget 2024 - General - Trading Q&A by Zerodha - All your queries on trading and markets answered

For FY2025-26, there is minor changes to how ltcg/stcg is classified. post #30. only for units sold after 1-apr–2025
also, stcg has benefit of rebate, while special rate tax/capital gains have only basic exemption limit benefit.

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3

Thanks. Sad that the concept of grandfathering has been done away with. It’s clear that the government can change rules overnight that changes all the calculations.

4

Hi @workingforgovt,

If you bought debt funds before April 1, 2023, and sell them after July 23, 2024, the long-term capital gains (LTCG) will be taxed at 12.5% without indexation. Short-term gains (STCG) will be taxed as per your income slab. Since your gains are long-term, a 12.5% tax will apply without the indexation benefit.

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