Capital gain tax on Debt Funds

POSTED BY Biswa Singh ON January 4, 2013 8:44 pm COMMENTS (2)

Dear All,

I have read a nice article on capital gain tax on mutual fund. I am sharing the link

http://www.tflguide.com/2011/12/mutual-fund-taxation-in-india.html

My question is that if the article is correct then do we have to give the long term capital gain tax on HDFC MIP LTG which is basically a debt fund with bit of exposure to equity.

 

2 replies on this article “Capital gain tax on Debt Funds”

  1. Dear Biswa, the fund in question has Eq. component limit to 20-25% & thus does not qualifies for Eq. fund (having Eq. exposure more than 65%), that’s why the LTCGs are taxable as the rates mentioned already by dear FFC.

    thanks

    Ashal

  2. of course the article is right. Hemant Beniwal is a pretty competent financial planner.
    You have to pay tax as outlined in the article:

    Without Indexation – 10% tax on capital gains
    With Indexation – 20% tax on capital gains

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