Impact of  Budget  on  Mutual  Fund  Investors

Impact of  Budget  on  Mutual  Fund  Investors

1.

Prior to October 1, 2024, Mutual fund redemptions exceeding ₹1 lakh were subject to a 20% TDS. Effective October 1, 2024, Mutual fund redemptions will no longer be attracting TDS*.

2.

Gold and silver ETFs, equity and hybrid FoFs, and international schemes will qualify for long-term capital gains (LTCG) tax benefits.

3.

Schemes investing more than 65% in debt and money market instruments will now be considered as debt funds.

4.

Indexation benefits have been removed for all asset classes.

5.

LTCG tax rate for equity-oriented schemes has increased from 10% to 12.5%.*

Investors will be responsible for calculating and paying capital gains tax when filing their ITR.