What are AMFI's key tax proposals for Budget FY27?

AMFI's proposals include ELSS deductions under the new tax regime, restoring indexation for debt funds, and tax parity for FoFs, ReITs, and InvITs.

Why does AMFI want indexation restored for debt funds?

AMFI believes restoring indexation benefits for debt funds will aid conservative investors and help develop India's corporate bond market.

How does AMFI want to change the definition of equity funds?

AMFI wants to include Fund of Funds investing at least 90% in equity-oriented schemes to receive the same tax treatment.

Home / Business and Economy / AMFI Seeks Tax Overhaul for Mutual Funds

AMFI Seeks Tax Overhaul for Mutual Funds

20 Jan

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Summary

AMFI proposes ELSS deduction under new tax regime.
Restoration of indexation for debt funds is requested.
Parity for FoFs, ReITs, and InvITs with equity funds sought.

AMFI Seeks Tax Overhaul for Mutual Funds

The Association of Mutual Fund of India (AMFI) has presented a comprehensive 27-point proposal to the government for the Union Budget FY27. A primary focus is the request for tax reforms aimed at stimulating investment and market growth.

AMFI seeks the reintroduction of long-term capital gains tax with indexation for debt mutual funds held for over 36 months. This is considered crucial for conservative investors and for deepening the corporate bond market, which supports national economic development.

The proposal also advocates for a separate deduction for Equity Linked Savings Scheme (ELSS) investments under the new tax regime, preserving its role as an accessible equity investment vehicle for retail investors.