Explained: How Centre's Move To Tax Gains From Debt Mutual Funds Will Affect You

Investors are likely to start preferring fixed deposits over debt funds once the indexation benefit is gone. “The proposal would take away the tax advantage for such funds and the investors may resort to alternate options such as fixed deposits,” Amit Maheshwari, tax partner, AKM Global told the Financial Express.

According to Gaurav Rastogi, CEO & founder at Kuvera.in., the move “will lead to an increase in the yield on corporate debt for investors to get the same after-tax returns”, reported CNBC-TV18.