News From Press Budget 2024: Will the indexation benefit on debt mutual fund be back?

Budget 2024: Will the indexation benefit on debt mutual fund be back?

Source: ET Jul 5, 2024

Inflation is a significant factor contributing to the increase in the value of a capital asset over time. Income tax laws allow you to adjust the sale price of a capital asset for inflation, so you pay tax on the real gains rather than the inflationary gains. Indexation is a method used to adjust the cost of a capital asset to reflect the effects of inflation since it was purchased.

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