India exempts debt mutual funds from new tax for a short period

Last Updated: Friday, July 25, 2014 - 15:29

New Delhi: The government has decided to exempt earnings from investments in debt mutual funds on units sold between April 1 and July 10 this year, Finance Minister Arun Jaitley told lawmakers on Friday, bowing to pressure from retail investors.

In his maiden budget, Jaitley had proposed a tax on gains from investments in non-equity mutual fund schemes. He also increased the long-term capital gains tax rate on debt-linked mutual funds to 20 percent from 10 percent.

The mutual fund industry protested against the proposed tax changes.

First Published: Friday, July 25, 2014 - 15:29

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