How are mutual funds taxed?
In a mutual fund, you make returns in two ways. How are mutual funds taxed for each of these ways? It depends on the nature of return.
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tax
Indexation in debt funds – pay little or no tax
Cost inflation index benefit makes the post-tax return of debt funds far superior to fixed deposits. Please note that debt fund taxation has undergone a change. Indexation benefit will not be available for investments made from April 1, 2023 onwards. You can read about this in our article, ‘Tax changes in mutual funds: How to
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