The government amended the 2023 Finance Bill to eliminate the 20% LTCG tax and indexed mutual funds to hold 35% of lower Indian equities. Profits from such funds are taxed per Slab, regardless of the age of the unit. This rule applies to purchases made after April 1, 2023.
So many investors are wondering if they can invest lump sums in debt funds or conservative hybrid funds by March 31, 2023 and benefit from the old tax regime at the 20% rate through indexing. I want to know how
Short answer to “Do I need to make a lump sum investment in a debt mutual fund by April 1, 2023?” A clear and vehement NO. That’s ridiculous.
If you suddenly come up with a lump sum to benefit from a change in tax law, it usually means that you are not yet managing your money according to your overall financial plan. Possible surpluses are not tagged to short-term or long-term goals.
Therefore, rather than worrying about a small profit, we strongly recommend that you work with a SEBI-registered commission-only advisor to organize your affairs. We reiterate that investment decisions should not be made solely to save taxes. This will only undermine the health of your portfolio.
But what about international funds? Can’t we benefit from a lump sum investment now? The small tax difference is negligible compared to the overall portfolio. All of these mental gymnastics are for psychological gain rather than numerical gain.
Let’s wait for AMFI to present its claims to the Ministry of Finance and SEBI. Some funds may change their mandates. Then make a call about your next move. That said, you’d better settle the extra tax yourself and get used to it.
Share this article with your friends using the buttons below.
🔥 Enjoy big discounts on courses and robo-advisor tools! 🔥
Plan your finances from start to finish with Robo Advisory’s Excel tool. ⇐ Used by over 1000 investors and advisors!
New tool! => Track your mutual fund and stock investments with this Google Spreadsheet!
- Please follow us google news.
- Any comments on the above article? Get in touch with us on Twitter: @freefincal again @pattufreefincal
- join us on youtube community Explore over 1000 videos!
- I have a question? Subscribe to our newsletter in this form.
- Click “Reply” to any email from us! We do not provide individualized investment advice. If you have a general question, you can write a detailed article without mentioning your name.
Get a free money management solution delivered to your mailbox! Subscribe to receive posts by email!
Explore the site! Search for information and insights from over 2000 articles.
About the author
Dr. M. Pattabiraman(PhD) is the founder, editor-in-chief and principal author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over 9 years of experience in publishing news analysis, research and financial product development.connect with him via twitter again link in, again Youtube. Pattabiraman has co-authored three printed books: (1) Goal-based investing can get you rich (CNBC TV18) For DIY investors. (2) game changer for young people breadwinner. (3) Chinchu got a supernatural power! for children.he also wrote 7 others free e-book Various money management topics. He is a patron and co-founder of “.commission only india,An organization that promotes impartial, fee-free investment advice.
Our flagship course! Learn how to manage your portfolio like a pro and reach your goals regardless of market conditions! ⇐ Over 3000 investors and advisors are part of our dedicated community! Plan your goals and figure out how to achieve the corpus you need, regardless of market conditions!! Watch the first lecture for free! One time payment! No recurring billing! Lifetime access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to confidently plan your pre- and post-retirement goals.
Our new course! Get people to pay for your skills and increase your income! ⇐ Over 700 office workers, entrepreneurs and financial advisors are part of our dedicated community. Learn how to get people to pay for your skills! Whether you’re a professional or a small business owner who wants to get more customers through online visibility, you can earn extra or passive income. Whether you’re an aspiring office worker, we’ll show you how to achieve this by showcasing your skills and building a community that trusts and pays for you. ! (You can watch the first lecture for free). One time payment! No recurring billing! Lifetime access to videos!
Our new children’s book: “Chinchuu Has Superpowers!” Now Available!
The problem for most investors is Informed decision making. We all made bad decisions or made money mistakes when we started earning and have spent years trying to undo these mistakes. Do I have to go through the same pain? What is this book about? What if, as a parent, you need to develop your child’s key skills in all aspects of life, not just managing and investing money? My answer: sound decision makingSo, in this book, we meet Chinchu, who is about to turn 10 years old. The story is what he wants for his birthday, how his parents plan it and teach him some important ideas about decision making and money management. Reader’s voice!
A must read for adults too! This is what all parents should teach their children from an early age. The importance of managing money and making decisions based on their wants and needs. It is written in plain language and is very good. – Arun.
Buy a Book: Chinchu Gives Your Child Super Powers!
How to profit from content writing: A new e-book for those interested in earning an extra income through content writing. Available at 50% discount for Rs. Only 500!
Want to see if the market is overvalued or undervalued? Use market assessment tools (works with any index!), or buy a new one Tactical buy and sell timing tools!
Published monthly mutual fund screener and Momentum, Low Volatility Stock Screener.
About freefincal content policy Freefincal is a news media organization that specializes in providing independent analysis, reports, reviews and insights on the development of mutual funds, stocks, investments, retirement and personal finance. We do not have conflicts of interest or bias.Please follow us google news. Freefincal serves over 3 million readers (5 million page views) annually with articles based solely on factual information and in-depth analysis by the authors. All statements made are verified from reliable and knowledgeable sources prior to publication. Freefincal does not publish paid articles, promotions, PR, satire, or opinions without data. All opinions presented are merely inferences backed by verifiable and reproducible evidence/data. contact address: Letter {at} freefincal {dot} com (sponsored posts or paid collaborations are not entertained)
Connect with us on social media
our publications
Goal-based investing can get you rich
Published by CNBC TV18, this book aims to help you ask the right questions and find the right answers. It also comes with 9 online calculators so you can create a custom his solution that fits your lifestyle. get it now.
A Game Changer: Forget Startups, Join Companies and Continue the Rich Life You Want
This book will help young earners get the basics right from day one! It will also help you travel to exotic locations at low cost. get it or give it to a young man breadwinner.
The ultimate guide to travel
This is an in-depth analysis of vacation planning, cheap flights, budget accommodation, what to do while traveling, and how slow travel is better for you financially and psychologically. Includes links to web pages and hand held at every step. Get PDF For Rs 300 (Instant Download)
