I have holdings in two debt funds. All units are purchased before March 2023. Kindly let me know about capital gains tax treatment on sale of these units.
V Vijaykumar
If the holdings in the debt funds are sold within 24 months of purchase, the gain shall be taxed as short-term capital gain and taxed at applicable income-tax slab rates. Whereas if the holdings are sold after 24 months of purchase, the gain shall be classified as long-term capital gain and taxed at 12.5 per cent. There shall be no benefit of indexation.
Tax rate of 20 per cent, the benefit of indexation and holding period of 36 months are available only if sale is before July 23, 2024.
The writer is Partner, Deloitte India
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