Grandfathering in LTCG

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The grandfathering clause is the exemption granted to existing investors for gains made by them before the new tax law came into force. The government has done this to ensure that investors who have committed money keeping in mind the easier tax regime are protected. As per the new laws, the government has said that gains made in equity-oriented mutual fund schemes till January 31, will be grandfathered or exempted. There will be no LTCG tax on notional profits on mutual funds till then.

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