No retro tax on debt mutual funds: Govt

India Infoline News Service | Mumbai |

The new tax regime on debt mutual funds will not be applicable for units sold and not purchased between April 1 and July 10.

Finance Minister Arun Jaitley on Friday said that the government will not retrospectively tax debt fund investors.
Jaitley said that higher tax on debt mutual funds will apply prospectively from July 10.
He further said that the new tax regime on debt mutual funds will not be applicable for units sold and not purchased between April 1 and July 10.
"I propose to move a government amendment in the Finance Bill itself that the new tax regime will not be applicable to transactions on sale of units which have taken place between 1 April and 10 July this year. If you have sold during this period, this (higher tax) will not apply," Jaitley said in reply to a debate on the Finance Bill, 2014 in the Lok Sabha.
The retrospectivity issue arose because some investors invested or redeemed their investments before announcement of the Budget on July 10. So, if they receive income this year, they would have to shell out more because of the higher tax rate.
However, the Finance Minister chose to give this benefit to redemptions and not investments made during the period.
Jaitley in his budget proposals on July 10 had said that long-term capital gains on debt mutual funds will be taxed at 20% instead of 10% earlier.
Speaking about fighting price rise, Jaitley said raising interest rates cannot be the only solution to tackle inflation but supply side issues need to be tackled.


 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.