The tax benefits for long-term debt mutual funds were eliminated by the government as of 1st April 2023 by an amendment to the Finance Bill. Long-term capital gains on debt mutual funds will now be taxed at the investor's tax slab rates, rather than the previous 20% with indexation benefit and 10% without that as a result, if the investor is subject to the highest tax bracket, this rate would be 35.8%. (including surcharge and cess). Investors who invest in debt mutual funds before March 31 will thus be able to get the indexation benefit. As a result, let's take opinions from our different industry experts on whether investors should invest in debt mutual funds March 31, 2023 to be eligible for indexation benefit.
