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Mar 25, 2023
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Long term capital gains in international mutual funds to be taxed as per the investor tax slab
Presently, international mutual funds, for the purpose of taxation are treated as debt funds. Now, as the taxation of debt fund is going to change, so will the taxation of international fund as per the Finance Bill, 2023 tabled by Union Finance Minister Nirmala Sitharaman and later passed by the Lok Sabha on Friday.
In an international mutual fund, the short-term gains arising within three years are taxed at the investor’s applicable tax slab while long-term gains are taxed at 20 per cent after indexation benefits, or at 10% without indexation.
“Currently, pure International funds are taxed similarly to debt funds and enjoy indexation benefits. As per the new amendment, funds with less than 35% exposure to Indian or domestic equities will get impacted.
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