Debt Funds lose favourable tax treatment. What now?
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- čas přidán 13. 09. 2024
- Starting April 2023, Debt Funds will no longer enjoy the benefit of indexation. Wondering what it means and how will it impact you? Watch this episode of Investors' Hangout.
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This is completely squeezing the middle class tax payer..all avenues of inflation adjusted investments are being stopped.
Will again vote for Seetaraman ji.
They are really helping India grow
@@ramalingamsambandam7195😂
I guess PPF is still left out?
On the contrary, All returns from fixed deposits should also be inflation adjusted.
Well said.
Then government has to give money for every depositors
This is problem. When they know fd is not having indexation while debt mf have it they will remove from later😂
We stay quiet because we don't have choice.... we have choice to kick of present govt.
We have voted them to squeeze us all in the name of development.
What happened to 15 lakh cr black money extracted during De Mo
Nobody knows
"We don't have a choice," that sums it up.
30% tax on long term holding of debt funds? Then not good investing in debt funds. Better to invest in aggressive hybrid funds and keep SWP.
So the point is withdraw money after retirement...
When your earnings are almost not there and if you are falling below (if 0% then better) then the tax will be less obviously...
If you are planning your retirement from these funds you can defer your tax to that time and withdraw keeping income in 0% or in the lower tax brackets. But if you are looking at lumpsum withdrawal while still earning you will possibly end up with returns after tax that don't beat inflation. I
In that case it might make sense to move your assets to Equity but I am sure there will soon be a increase in the 10% currently levied on Equity LTCG!
I don’t understand why govt is only chasing after middle class citizen only. It seems govt only think for lower class and higher class for vote bank politics. Middle class citizen always most sufferer in India .
It is the middle class which is the most vociferous supporter of the present govt in all media.
So it means they like to pay taxes and sacrifice and follow the greatest leader since Asoka
Does this make good case for balanced advantage funds?
Is there a liquidity risk ? Should I reduce my allocation for now just in case there is a huge outflow.
Also what is the recommendation for making further investments before March 31st ?
If you don’t need money right now, avoid redemption before 31st.
If you want to enjoy grandfathering benefits, invest before 31st.
I had SIP in debt fund on monthly basis, letting go of it.
If one invests in a debt fund using a self directed IRA it should return with zero taxes as long as it is not pulled out as personal income until one is 59 1/2 years old. Correct?
Which are those funds with both domestic and international exposure such that they are treated as regular equity funds for taxation purpose? (Point made around 04:20 min)
So basically Government wants everyone to invest in equity. Middle class savers continue to get squeezed. Why can’t there be standard tax?
But what can one do for rebalancing from debt to equity
Gold is soaring 60k+ per 10 gm
Are current investments in debt mutual funds grandfathered-in? There's little clarity on that - while some say only MLDs are not grandfathered and mutual funds units bought before 1st April are, others believe nothing is grandfathered?
What is MLD ?
Market Linked Debentures, also a product whose taxation was changed on similar lines.
@@priyanksriv1 ok thanks.
Can we invest through 'Value Research'? Does 'Value Research' act as investment broker? Do we need to pay to 'Value Research'?
No.
Nice insights . Emphasis on tax deferral and money on demand aspect is good. Will avoid gold funds. International funds with 35% weightage vis a vis 65% for domestic equity. Voila . The parting shot on inevitability of change is true of investment and life as such
Will your recommendation regarding investing for monthly income (34% equity & 66% debt with annual rebalancing) change now??
Will wait for an official answer, but perhaps not entirely.
The recommended approach had included Liquid and other short term fund allocations to be realised in less than 3 years. So a decent percentage can perhaps still be kept.
Thank you very much for sharing your insights and spreading awareness about this issue.
Your video helped me understand the issue better 😊
You are doing important work 🙏
Glad it was helpful!
What about Index Funds and ETFs Sir. Do they continue to get Indexation benefit.
What about Kotak nasdaq 100 fund?
Unbelievable. This is very bad news. Middle class will be hit
Does taking lon on debt mutual funds will be taxable ?
Inflation happens because govt is not doing their job properly. So govt should tax only the amount after adjusting for inflation. This is ripping of the middle class. No matter which debt fund you invest after tax it will never beat inflation. Never. You loose money in all debt fund unless you loose job for an year and redeem the debt funds for living off.
Is this taxability applicable on all redemptions made from 1st April'23 even though invested earlier or on investments made from 1st April'23 and redeemed there after.?
No grandfather clause exists for this. So exit before 31march.
Hello
@anoopperiwal5401 The indexation benefit is applicable to any holder who has invested before 1st April 2023. You can avail the benefits of indexation regardless of your decision to sell your investments or keep them on hold in future.
I hope this resolves your query.
Does this apply to ETFs as well?
+1
Does debt fund have any ETF?
@@Jyyo liquid bees
Hello this is applicable to all non-equity funds irrespective of whether it is an ETF (debt ETF) or not.
I hope this was helpful.
anti middle class