📝 Update debt fund tax rules post 2023 budget (#73)

* 📝 Update debt fund tax rules post 2023 budget

* Update debt fund indexation rule changes

Author: oxalorg

faqs/misc/where-can-i-park-money-for-a-few-days-a-few-months-or-a-few-years.md

@@ -40,7 +40,13 @@ Here are the NAV graphs of HDFC Liquid fund, the biggest liquid fund in India in
 
 That being said, investments in debt funds don’t incur TDS or taxes until you redeem money from them. Many liquid funds also offer instant redemption up to $$₹50,000$$ at any time of the day although the reliability of the instant redemption depends on the AMC website.
 
-In addition, debt mutual funds enjoy _indexation_ benefits when it comes to taxation if they are held for 3 years or more.
+#### Indexation benefits and taxation
+
+Prior to the 2023 Budget, debt funds used to enjoy _indexation_ benefits when it comes to taxation if they were held for 3 years or more. This is no longer the case for debt fund investments made on or after 1st April, 2023.
+
+{% hint style="danger" %}
+The below example showcases indexation benefits applicable if you had invested in a debt fund prior to 31st March, 2023.
+{% endhint %}
 
 As an example, let's consider $$₹1$$ lakh parked for 1 year in a bank account, a fixed deposit, and a liquid fund. The interest earned and the actual interest earned after taxes, assuming $$30\%$$ tax slab, are mentioned as follows:
 

start-here/zero-to-investing/getting-started.md

@@ -78,7 +78,7 @@ I will cut short the other options, because they are as pathetic for someone of
 Why that thing? Because they are:
 
 * Diversified Basically, Liquid MFs keep money into a large number of different areas, so that if one area goes bad (recent news like IL\&FS, or CoVid crash), then your entire corpus is not in jeopardy all at once. The more diversified the money is kept, better is the protection (this is a general rule, but there are exceptions, which we'd get to later).
-* In general, you can earn more than FD, both as amount of interest as well as with less tax, if you keep the money in there for >3 years.
+* In general, you can earn more than FD, both as amount of interest as well as with less tax, ~if you keep the money in there for >3 years.~ (Update: Starting from 1st April, 2023, debt funds will no longer provide long-term tax benefits if held for >3 years. However, they are still better than FDs as taxes are only accrued on redemption and not annually)
 * Third and most important, the money withdrawal is flexible. You want to redeem only 5,000 INR, you can. You want to take out 1L, you can (of course, you should have more than 1 lakh invested). You want to remove the entire amount and see it in your balance, you can do that as well
 
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