The existing Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) will reopen from March 29 onwards. However, fresh SIP and STP will not be allowed.
Finance ministry is likely to bring in amendments to the Finance Bill 2023, removing the long term capital gains tax (LTCG) benefits available to such specified MFs. Currently, such mutual fund schemes attract 20 per cent LTCG with indexation benefits.
The Finance Bill 2023 with 64 official amendments, including the one that seeks withdrawal of long-term tax benefits on certain categories of debt mutual funds, was passed today
Debt mutual funds are stripped of the long-term tax benefit if they invest less than 35 per cent of their assets in equities. Such mutual funds will attract short term capital gains tax.