Hi one query on debt mutual fund taxation
For debt fund which are bought before 1st Apr 2023, Incase I sell it now, what is tax implication
My understanding is that all are more 2 years if I seel today and hence flat 12.5% tax as long term gain. Kindly clarify.
If you bought a debt mutual fund before 1 April 2023 and you sell it now (after 23 July 2024):
• If held more than 24 months - Tax = 12.5% (Long Term Capital Gain)
No indexation benefit
• If held 24 months or less -Tax = As per your income tax slab (Short Term Capital Gain)
Old rule (20% with indexation after 3 years) no longer applies for redemptions happening now.
Thanks. I was also having same knowledge but got confused because of zerodha P&L tax statement. Refer to attached picture, yellow highlighted one. Zerodha showed this as short term profit debt however particular one was bought before 1st Apr 2023 and hence should be in long term profit debt.
hi One more query. What ever debt fund bought before 1st april 2023 will be taxed at 12.5% is understood. However in case my total income is less than 12 lakh in financial year 2025-26 including this profit of debt fund. then also do i need to pay this 12.5% tax or i will get tax exempt as under new regime upto 12 Lakh there is no tax.
hi Pls somebody reply
A rebate under Section 87A is applicable exclusively in cases of income at the normal rate and is not available with respect to income at the special rate, such as long-term capital gains. In your specific situation, even if the total income, including long-term capital gains from debt mutual funds, is below Rs. 12 lakhs, capital gains tax remains applicable on such gains.
ok thanks
