Debt MF

POSTED BY Kirubakaran ON February 27, 2013 2:15 pm COMMENTS (3)


 I want to know the debt mutual funds return… can we show that kind of investment for tax deduction and income also tax free….

 And if any one of you could share the returns of the debt MF?




3 replies on this article “Debt MF”

  1. Dear Karthik, good point. I forget to mention in my original reply. The profits from debt funds ‘ll be classified as capital gains. if the holding is less than 1Y, the gains ‘ll be STCG & for more than 1Y holding the gains ‘ll be LTCGs.

    So in your ITR, the form to be filled ‘ll be either ITR-2 or higher series & the head of income ‘ll be capital gains.



  2. Karthik says:

    when you say 10.3%, in what category of income, the profit from debt fund should be declared while filing the returns?

  3. Dear Kirubakaran, there is no debt fund which is eligible for tax benefit under section 80C. Regarding the redemption from debt funds, the same is taxable either @ 10.3% flat rate or 20.6% indexed rate if it’s held for more than 1Y. For anything less than 1Y holding, the gains if any ‘ll be added in your income & ‘ll be taxed @ your slab rate.



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