I invested Rs.2 lakh in short term debt, which I plan to redeem in six months. What will be the tax implications? - Smita George, Pune

In debt funds, short-term gains (investments held for less than three years) are treated as regular income and taxed accordingly. As you plan to withdraw your investments in six months, your gains will be added to your income and taxed at your marginal rate of taxation, depending on the tax slab you fall in.

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