Mumbai: Mutual Fund Industry Trade Body arena Finance Minister has been proposed to allow fund houses to start debt linked savings schemes.dlss) which would allow tax benefits to investors, thereby deepening the bond market. Similar schemes are available in the equity sector called Equity-Linked Savings Schemes (ELSS).ELSS, AMFI has suggested that fund houses should be permitted to launch pension-oriented MF schemes (MFLRs) with similar tax treatment as is available under it. NPS,
in his budget In the proposal, Amfi has asked the government to make changes in the income tax laws so that there is uniformity in the definitions of long-term capital gains (LTCG) for listed debt securities and debt mutual fund (MF) schemes. It also requested the government to reduce the holding period in gold and commodity ETFs to one year for calculation ltcg And subsequent taxation on that, for three years now.
The trade body has proposed to the government to bring unit-linked insurance plans (ULIPs) by life insurers and equity MF schemes in terms of treatment under LTCG rules, which are mainly available to eliminate tax arbitrage. ULIP holder. It also proposed that MF units be recognized as long-term assets. AMFI has some other proposals which are aimed at bringing parity in tax treatment between MF units and other comparable financial products available in the market.
AMFI in its proposal said the government should allow the fund industry to launch DLSS which would act as low cost, low risk instruments and would be a tax-friendly investment vehicle for retail investors. The product would “invest in high credit rated debt instruments with appropriate tax benefits which would help in deepening the bond market,” it noted. Investments under DLSS have a lock-in of five years. There is a lock-in of three years in investing through ELSS.
It asked the government to allow fund houses to launch MFLRS, on the principle of similar tax treatment to similar products with exempt-exempt-exempt (EEE) status with similar tax benefits as applicable to NPS. EEE status implies tax benefits while investing, no tax on returns and finally no tax during redemption.
in his budget In the proposal, Amfi has asked the government to make changes in the income tax laws so that there is uniformity in the definitions of long-term capital gains (LTCG) for listed debt securities and debt mutual fund (MF) schemes. It also requested the government to reduce the holding period in gold and commodity ETFs to one year for calculation ltcg And subsequent taxation on that, for three years now.
The trade body has proposed to the government to bring unit-linked insurance plans (ULIPs) by life insurers and equity MF schemes in terms of treatment under LTCG rules, which are mainly available to eliminate tax arbitrage. ULIP holder. It also proposed that MF units be recognized as long-term assets. AMFI has some other proposals which are aimed at bringing parity in tax treatment between MF units and other comparable financial products available in the market.
AMFI in its proposal said the government should allow the fund industry to launch DLSS which would act as low cost, low risk instruments and would be a tax-friendly investment vehicle for retail investors. The product would “invest in high credit rated debt instruments with appropriate tax benefits which would help in deepening the bond market,” it noted. Investments under DLSS have a lock-in of five years. There is a lock-in of three years in investing through ELSS.
It asked the government to allow fund houses to launch MFLRS, on the principle of similar tax treatment to similar products with exempt-exempt-exempt (EEE) status with similar tax benefits as applicable to NPS. EEE status implies tax benefits while investing, no tax on returns and finally no tax during redemption.