Tax

The index long-term strategy involves investing in three different instruments: equity, debt funds, and futures and options derivatives. Each instrument has its own tax implications in India. For equity investments, the tax falls under long-term capital gains after holding for at least one year. Debt funds are considered long-term capital gains after a holding period of three years. Futures and options derivatives are treated as business income and taxed accordingly. The post-tax returns for each component depend on the investor's tax slab. The post-tax returns for the index long-term strategy range from 18% with a 0% tax slab to 14.76% with a 30% tax slab. Index long-term strategy involves a combination of three investment instruments, each with its specific taxation implications in India. The allocation comprises 30% in equity, 70% in debt funds, and exposure to futures and options derivatives. Let's delve into the tax impact and post-tax returns associated with each component. Equity with 30% allocation. Taxation falls under long-term capital gains after holding for a minimum period of one year. Post-tax returns are dependent on the investor's tax slab. Debt funds with 70% allocation. Taxation, considered as long-term capital gains after a holding period of three years. Post-tax returns are affected by the investor's tax slab. Futures and options, derivatives. Taxation, treated as business income, and income taxes applicable according to the investor's tax slab. Post-tax returns varies based on the tax slab of the investor. Post-tax returns in index long-term strategy. With a tax slab of 0%, post-tax returns are 18%. With a tax slab of 10%, post-tax returns are 16.9%. With a tax slab of 20%, post-tax returns are 15.75%. With a tax slab of 30%, post-tax returns are 14.76%. you you you you you you you you you you you you you you you