Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Debt fund indexation was a tax benefit (removed for investments made after April 2023) that adjusted the purchase cost of debt mutual funds for inflation before computing long-term capital gains tax.
An older tax break that reduced debt fund tax by adjusting your buy price for inflation.
Since the Finance Act 2023, debt mutual fund gains (with under 35% equity allocation) are taxed at slab rate as short-term gains regardless of holding period, with no indexation benefit for new investments.
A debt fund bought before April 2023 and held over 3 years may still qualify for the older indexation-based LTCG treatment.
An older tax break that reduced debt fund tax by adjusting your buy price for inflation.
Debt Fund Indexation (Pre-2023 Rule) helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.