Debt Funds vs Fixed Deposits: Invest in Bonds for Higher Returns After Tax Changes

Sangeeta27 May, 2024Finance

Investing in bonds is more than just looking at the tax implications The fixed income investing landscape witnessed an overhaul nearly a year ago, especially for those invested in debt funds. The government changed the tax rules to make capital gains booked on units of debt schemes acquired on or after April 1, 2023 taxable at the slab rate. Along with this, debt schemes also lost the indexation benefit that allowed factoring in inflation to arrive at the tax payable, thereby softening the tax impact.