Eat the rich, but do it in a logical way
Hindustan TimesOpinions on taxes on assets almost always depend on one’s position in life. Equity go long-term after a holding period of one year, real estate at two years, physical gold at three years, and gold and debt mutual funds do not go long-term at all. In a strange move in 2023, the ministry of finance classified long-term profits on debt mutual funds as income to be taxed at the investor’s marginal tax rate, while listed bonds get treated as equity in terms of their long-term tax treatment. This is particularly worrisome for long-term equity investors who cannot switch from a poorly performing fund to a well-performing fund because there is a capital gains tax on exit. Surely there can be a way to switch your holding, say within a month, into another fund for no incidence of a long-term capital gains tax.
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India Likely to Propose Removing Long-Term Capital Gains for Debt Mutual Funds: Report
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