?? Budget 2025 Hack: Beat the Taxman on Debt Mutual Funds! ??

Hey there! ??

If you’ve invested in mutual funds in debt, listen up—Budget 2025 has something interesting for you. But before you jump with joy, there’s one small thing to check:

?? Did you buy your debt mutual funds before or after April 2023?

Because this one detail can make or break your tax-saving game! Let me explain.

If You Bought Debt Mutual Funds AFTER April 2023… ??

Congrats! You’re in for some good news. ??

• Your investment is now taxed under Section 50AA and is eligible for rebates.
• Since these funds are taxed as per your income slab, they qualify for a ?60,000 rebate under Section 87A.
• What does this mean for you? ??

Moral of the story? If you don’t need the money urgently, just wait a little and save big on taxes!

If You Bought Debt Mutual Funds BEFORE April 2023… ??

Okay, so you’re not getting the jackpot like the newer debt MF holders, but there’s still some relief!

• Your investment falls under Section 122 and is taxed at 12.5% (LTCG rate).
• Since it’s taxed separately, it doesn’t qualify for the ?60,000 rebate.
• But here’s the trick…

Not a huge saving, but hey, every rupee counts, right?

So, What Should You Do? ??

? Step 1: Check when you bought your debt mutual funds. ? Step 2: If it’s after April 2023, WAIT until after April 1, 2025, to avoid tax completely! ? Step 3: If it’s before April 2023, selling after April still saves you some tax. ? Step 4: If unsure, ask a tax expert before making a move.

Final Thought: A Small Decision Can Save You Big Money! ??

This budget tweak is a golden opportunity to legally cut down your tax bill.

?? A little patience = big savings

So, time your redemptions wisely and keep more money in your pocket. ??

If you found this useful, share it with someone who might benefit. Because good money decisions are always better when shared! ??

? Coming up next week!

General Market Overview:

• Indian markets remained volatile amid global economic uncertainty. Sensex and Nifty saw mixed movements.
• Analysts expect short-term fluctuations, but domestic institutional investors (DII) could support a rebound despite foreign investor (FII) outflows.
• Key factors to watch: Corporate earnings, RBI’s policy stance, inflation trends, and global geopolitical developments.

IPO News:

• Ajax Engineering IPO: Opens on February 10.
• Hexaware Technologies IPO: Opens on February 12.

Key Earnings Releases:

• Monday, February 10:Apollo Hospitals, Bata India, CRISIL, Eicher Motors, Escorts Kubota, Gillette India, Grasim Industries, Indigo Paints, FSN E-Commerce Ventures (Nykaa), Patanjali Foods
• Tuesday, February 11:Lupin, Berger Paints, EIH, Vodafone Idea, IRCTC

• Wednesday, February 12:Ashok Leyland, Bharat Forge, Godrej Industries, Hindustan Aeronautics, Vijaya Diagnostic Centre
• Thursday, February 13:Hindalco Industries, IPCA Laboratories, United Breweries, Healthcare Global Enterprises
• Friday, February 14:Glenmark Pharmaceuticals

Important Economic Data to Watch:

• India Services PMI: To be released on February 5. The previous figure stood at 58.5.
• India Manufacturing PMI: Expected on February 3. The last reported reading was 56.8.
• US Initial Jobless Claims: Data for the week ending February 2 will be released. Last week's claims stood at 215,000.
• India Foreign Exchange Reserves: To be announced for the week ending January 31. Previous reserves were $608.3 billion.

Keep an eye on these developments to make informed investment decisions. Stay tuned for more updates! ??

?? Prime Wealth Finserv In Media?

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Budget 2025: Can tax relief be on the horizon for middle-class taxpayers?

Chakrivardhan Kuppala., Wrote for Outlook Business

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Hope you liked reading it as much as we did writing it! See you! ??