Tax on debt and fund of funds

Income Tax Act 1961
1

Question

Indian amc’s which have Fund of Funds investing in the US markets and Index funds by Indian amc’s investing in US market are both taxed as debt funds, right?

Now debt funds taxation went through some changes pre and post April 2023 iirc. Suppose there are SIP’s or lumpsums pre and post 2023 then can you please share how does the taxation work here?

If the gains from debt funds are added to the normal income of a taxpayer, then is it still taxfree till 12 lacs (if rebate of 87a is included)?

There is no carry forward of losses for debt funds, right? But is there any way to adjust the debt funds losses somewhere?

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  1. Tax Rate: Post-April 2023 debt and international FoF gains are taxed strictly at your personal income tax slab rates.
  2. Slab Integration: If your overall income remains under the Section 87A rebate threshold (₹12 lakh), no tax is triggered.
  3. Loss Adjustment: Debt fund capital losses can be carried forward for 8 years and set off against other capital gains, but not against ordinary income.