Indexation benefit available to debt mutual funds may go

If An investor invested 5 lakhs in debt scheme in 2017 and wishes to redeem in 2023 with capital gains in valuation.

he/she is liable for _____.

• STCG - as per Tax slab

• LTCG- 20% with Indexation

• LTCG - 20%

• LTCG - As per Tax Slab

• LTCG- 10% above gains of 1 lakh

Debt funds investors cannot be redeemed anytime without any break cost charges which is unique offering compared to any other fixed income investment options.

• True

• False

• Slightly

• Both A and B

Even after change in tax regime, investors are still better off in a Debt Mutual Funds because your tax pay-out is deferred to the time, when you finally redeem your investment.

• True

• False

• Maybe

• New tax regime affects Interest of Debt Mutual Funds

On Bank and Corporate FDs, you pay tax at your _____ every year. 

• Marginal tax rate

• Interest Rate

• Income Interest Rate

• capital appreciation %

One can also withdraw a part or whole of their investment from debt mutual funds, without any pre-payment penalty like in Fixed Deposits.

• True

• False

• Partial interest deductions happen

• Interest is deducted

Benefit of indexation to debt mutual fund investment made on 31st march at 4pm will be applicable.

• True

• False

• both A and B

• none

Indexation benefit to debt mutual fund will only be applicable to investment made on or before 31st March 2023 , also the same needs to be realized the same day.

• True

• False

• Partially

• Slightly

As per the amendments proposed to _____ , proposes to do away with the benefit of indexation benefit.

• Finance Bill, 2023

• Parliament Bill, 2023

• MPC committee

• as per the Budget 2023