Government to not retrospectively tax debt fund investors
Zee Media Bureau
New Delhi: The government will not retrospectively tax debt fund investors, as per Zee news sources.
For the maturity of fund between April 1, 2014 and July 10, 2014, the minimum investment period being considered long-term capital gains will be 12 months.
Finance Minister Arun Jaitley in his budget proposals on July 10 had said that long-term capital gains tax on debt-MFs will go up to 20 percent from 10 percent. The move is part of government's effort to bring parity with banks and other debt instruments.
Besides the holding period for these units to be eligible for long-term capital gains has been hiked to 36 months from 12 months.
Finance Ministry, according to sources, could extend lower tax rate of 10 percent to those investors who had redeemed their holding on or before July 10.
Also, the tax department is considering to exempt past investments whose redemptions would be made by March 2015.