Does the indexation benefit apply to investments made before March 31?

I could understand that indexation benefits have been removed from non-equity funds, but I am a bit confused about since when is the new law applicable. Can you please clarify the same? - Anonymous

Yes, the indexation benefit applies to investments made until March 31, 2023.

Recently, the Indian government revised taxation rules for non-equity fund gains, removing the indexation benefit. This means that regardless of the holding period, gains will now be added to an investor's taxable income and taxed according to the applicable slab.

However, this change only applies to investments made on or after April 1, 2023. Investors who made investments prior to this date can still benefit from indexation.

Furthermore, it should be noted that the Finance Bill 2023 has attempted to reduce the tax liability for individuals whose taxable income marginally exceeds Rs 7 lakh. Read more about it here.

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