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Why tax arbitrage argument is not valid for the change in debt fund taxation
The case that the tax change was done to remove the tax arbitrage that debt funds had over FDs rests on very shaky grounds.
Debt fund
Mutual fund
Tax arbitrage
Finance act 2023
Long term capital gain tax
Debt mutual funds
Tax parity
Fixed deposits
Marketable investments
Market valuation risk
Short term capital gains
Interest income
Liquid funds
Accrual interest income
Market risk
Medium to long duration debt funds
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