Specified Mutual Fund definition clarified: >65% in debt/money market instruments or >65% in such funds. Fund-of-Funds included. Effective 04/01/2026.

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Full Text of the Document

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....The definition of "Specified Mutual Fund" u/s 50AA is proposed to be amended to provide clarity regarding the proportion of investment in debt and money market instruments, and to clarify the investment requirements for Fund-of-Funds (FoFs). A specified mutual fund shall mean a mutual fund that invests more than 65% of its total proceeds in debt and money market instruments, or a fund that invests 65% or more of its total proceeds in units of such a fund. The amendment under clause (ii) of the Explanation of section 50AA is proposed to be effective from April 1, 2026, and applicable from the assessment year 2026-27 onwards.....