The Finance Bill 2023 proposes to tax the capital gains arising from the transfer Says Vishal Yeole, Waterfield Advisors
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Below is Quote On Behalf Post Budget By Vishal Yeole, Vice President, Business Advisory Services, Waterfield Advisors
Sheen off MLD’s?
The Finance Bill 2023 proposes to tax the capital gains arising from the transfer or redemption or maturity of MLD’s as short-term capital gains.The proposed treatment remains the same irrespective of the holding period of the MLD (say, more than 1 year or 3 years). The Bill proposes to incorporate a deemed fiction, whereby, it would be “deemed” to be a short-term capital asset. Thus, taxable at 30% (plus applicable surcharge and cess).
However, the cost of acquisition and expenditure incurred for the transfer of MLD’s shall be allowed as eligible deduction.
The proposed amendment could potentially take the sheen off this particular asset class and; resultantly, could see investors turning to other Fixed Income products.'
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