Decoding ITR Filing: New Rules for Debt Mutual Funds

Imagine you made money from investments in debt mutual funds.

The tax rules changed recently, making it a bit more complicated.

Before, if you held these investments for a long time, the tax was lower.

Now, it doesn't matter how long you held them; the tax is based on your regular income rate.

If you bought them before April 2023 and held them for over 3 years, you might still get the old tax break.

It's like sorting your money: you need to know when you bought each investment to figure out the right tax.

For investments made using SIP, the first investments you made are considered the first ones you sell.