Debt mutual fund vs bank fixed deposit (post-2023 tax regime)

Tue, 12 May 2026 00:00:00 +0000

The Finance Act 2023 introduced a fundamental change to the taxation of debt mutual funds in India, effective from 1 April 2023. Prior to this amendment, gains on debt mutual fund units held for more than 36 months were classified as long-term capital gains (LTCG) and taxed at 20% with indexation benefit. From 1 April 2023, gains on specified mutual funds (those with domestic equity exposure of 35% or less) are taxed at the investor’s applicable income tax slab rate irrespective of holding period, under the new Section 50AA of the Income Tax Act, 1961.

Post-2023 Tax on WebNotes

Debt mutual fund vs bank fixed deposit (post-2023 tax regime)