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Old 24th July 2024, 10:42   #16
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Re: The Mutual Funds Thread

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Originally Posted by PearlJam View Post
Any idea if the LTCG indexation benefits on debt funds bought on or before 31-march-2023, still applies? If yes, is that LTCG still 20%? If no, then will the LTCG be 12.5% or the applicable tax rate? Thanks!
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Originally Posted by DigitalOne View Post
Also, I hope there is no effect on already purchased Sovereign Gold Bonds at the time of maturity.
I'm also looking for an answer to the above two questions. I asked Radhika Gupta (of Edelweiss) yesterday on X. She has a great summary of what has changed for hybrid/multi-asset funds / FoF / Foreign equity etc - those that she said are 'in-between' funds.

However, the above two were not covered in her video. I am looking for an answer to the same. There is speculation elsewhere that no grandfathering for debt funds acquired before Apr 23 will be allowed.

Interestingly gold ETFs have corrected more than 6% which is the reduction in MCX gold price. Given that LTCG on those will be 12.5% if held for more than 2 years I wonder if this is an opportunity to buy?

Regd SGB, redemption tax status will probably not be affected as it's governed by RBI. Secondary market sales should attract 12.5% if held for more than 2 years (other asset rules) OR 1 year (bond rules) IMHO.

Last edited by vaibhav_a_a : 24th July 2024 at 10:44.
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Old 24th July 2024, 13:29   #17
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Re: The Mutual Funds Thread

Apologies for the back-to-back posts but Radhika Gupta of Edelweiss just released this via X. This clarifies one of the points re debt investments made prior to April 2023.

Budget 2024 impact on investments-20240724_132622.jpg
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Old 24th July 2024, 17:59   #18
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Re: The Mutual Funds Thread

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Originally Posted by ottocycle View Post
Are the changes to LTCG taxes applicable to both new as well as old tax regime? Or just for new tax regime?
LTCG has nothing to do with regime. If my wife has money invested in mutual funds and is not working, even if she earns say 2L profit next year, she will have to pay 12.5% on the 75000 rupees (1.25L is exempted under new rule) even though she has no other income at all.
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Old 24th July 2024, 20:12   #19
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Re: The Mutual Funds Thread

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Originally Posted by raksrules View Post
LTCG has nothing to do with regime. If my wife has money invested in mutual funds and is not working, even if she earns say 2L profit next year, she will have to pay 12.5% on the 75000 rupees (1.25L is exempted under new rule) even though she has no other income at all.
IMHO, that’s not correct. Basic exemption limit (2.5L in old tax regime and 3L in new tax regime) will still be applicable. The LTCG exemption of 1.25L will also be exempt on top of that. Other deductions (80C, 80D etc.) or 87A tax rebate won’t be allowed. Please check IT department tax calculator here (select advance tab).
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Old 24th July 2024, 22:51   #20
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Re: Budget 2024 impact on investments

Budget 2024 impact on investments - Post moved to a new thread.
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Old 25th July 2024, 09:15   #21
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Re: The Mutual Funds Thread

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Originally Posted by whitewing View Post
The Major impact is the doing away of indexation benefits. Bound to rake in revenue to the Govt.
Wonder how would capital gains be taxed on sale of inherited property.
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Old 25th July 2024, 09:32   #22
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Re: Budget 2024 impact on investments

Can anybody clarify the following?
What is the taxation (LTCG) on Debt oriented mutual funds acquired before 1st April 2023, redeemed after 23rd July 2024?

The images posted in this thread post #2, #14 and #17 are conflicting in this regard.

I thought 2023 budget already got rid of 20% tax with indexation benefits for LTCG. And it was taxed as per individual's tax slab.
I seem to agree with image in Post #2. The other 2 images seem erroneous.
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Old 25th July 2024, 09:33   #23
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Re: The Mutual Funds Thread

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Wonder how would capital gains be taxed on sale of inherited property.
Identical to self acquired property. I think the acquisition price would be the market price of the property 2001 (this is the valuation year) as determined by a valuator.
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Old 25th July 2024, 10:08   #24
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Re: Budget 2024 impact on investments

Is there any scope for exemption if an investor incurs a short term/long term loss while selling of his shares etc ? I have a loss making investment which is always on downward spiral. If the government conveniently takes away a chunk if you are doing well I think they should also provide some relief when one is not doing so great.
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Old 25th July 2024, 10:22   #25
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Re: Budget 2024 impact on investments

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I thought 2023 budget already got rid of 20% tax with indexation benefits for LTCG. And it was taxed as per individual's tax slab.
There is a category of funds where equity % is between 35 and 65% where 20% LTCG with indexation was still applicable. See the section "Hybrid MF (>35% and <65% Domestic equity) in post#17.

I had discussed this category and a couple of funds, namely PPFAS Dynamic Asset Allocation fund and Nippon Multi-Asset Allocation fund in "The Mutual Funds thread" even just on the morning of the Budget day. All that discussion is moot now .
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Old 25th July 2024, 10:39   #26
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Re: Budget 2024 impact on investments

One question - what happens to LTCG on investments before Feb 2018? There was a grandfathering clause for equity when LTCG was introduced. Is that gone?
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Old 25th July 2024, 10:41   #27
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Re: Budget 2024 impact on investments

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Originally Posted by DigitalOne View Post
There is a category of funds where equity % is between 35 and 65% where 20% LTCG with indexation was still applicable. See the section "Hybrid MF (>35% and <65% Domestic equity) in post#17.

I had discussed this category and a couple of funds, namely PPFAS Dynamic Asset Allocation fund and Nippon Multi-Asset Allocation fund in "The Mutual Funds thread" even just on the morning of the Budget day. All that discussion is moot now .
Oh! thanks. I read your post #4580 in "The Mutual Funds thread" now. Also Post #4592 by BHPian vijaykr in that thread. Things are clearer now!

Yup! That discussion is moot now
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Old 25th July 2024, 10:53   #28
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Re: Budget 2024 impact on investments

Impact on Rs 4 Lakh Mutual Fund Earnings

Case 1: Short-Term Capital Gains

If the complete Rs 4 lakh is considered as short-term capital gains, the tax liability will be:

Before Budget 2024: 15% of Rs 4 lakh = Rs 60,000

After Budget 2024: 20% of Rs 4 lakh = Rs 80,000

Increase in tax liability: Rs 20,000

Case 2: Long-Term Capital Gains

Assuming the complete Rs 4 lakh is considered as long-term capital gains:

Before Budget 2024: Taxable income = Rs 4 lakh – Rs 1 lakh (exemption) = Rs 3 lakh.

Tax = 10% of Rs 3 lakh = Rs 30,000

After Budget 2024: Taxable income = Rs 4 lakh – Rs 1.25 lakh (exemption) = Rs 2.75 lakh.

Tax = 12.5% of Rs 2.75 lakh = Rs 34,375

Increase in tax liability: Rs 4,375
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Old 25th July 2024, 10:57   #29
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Re: The Mutual Funds Thread

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Originally Posted by DigitalOne View Post
Thanks!! This clarifies a lot. Hope the folks at Karvy/CAMS are up to the task of programming this complexity. This year (FY 2023-24) itself, I found a discrepancy between the CG statement generated at MFCentral vs CAMS with respect to a Franklin Templeton Vodafone segregated fund. Next year will be a mess. I certainly don't intend to do it on my own .

Also, I hope there is no effect on already purchased Sovereign Gold Bonds at the time of maturity.


Watch from 11:00. The sgb dilemma is described very well. He even goes on to suggest a large scale PIL filing for the same
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Old 25th July 2024, 10:59   #30
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Re: The Mutual Funds Thread

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Originally Posted by lemedico View Post
https://Youtu.be/SU9l25IFc28?si=CY42BP8zATM4nbu4

Watch from 11:00. The sgb dilemma is described very well. He even goes on to suggest a large scale PIL filing for the same
This is very true. I invested in SGBs and they are maturing on August 4, 2024. This is absolute fraud on the SGB investors who trusted a Govt of India initiative.
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