How to compute slab-rate tax on PPFAS Liquid Fund (post Finance Act 2023)

Sun, 17 May 2026 00:00:00 +0000

The Finance Act 2023 was the largest single change to debt mutual fund taxation in over a decade. For any debt-MF investment (technically: any scheme with less than 35 per cent equity exposure) made on or after 1 April 2023, the old indexation-plus-LTCG-at-20-per-cent framework is gone. Gains are taxed at the investor’s marginal slab rate regardless of holding period. Among PPFAS schemes, the Liquid Fund and the Conservative Hybrid Fund fall under this; PPFCF, ELSS, Arbitrage, DAAF, and Large Cap remain equity-oriented and use Section 112A or 111A.

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How to compute slab-rate tax on PPFAS Liquid Fund (post Finance Act 2023)