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Amendments proposed for MF industry

Key proposals for the mutual funds industry

Chandan Kishore Kant  |  Mumbai 

Arun Jaitley revealed a few proposals that will affect the mutual funds (MF) industry. Here are the relevant proposals

a) To amend the provisions of the so as to provide tax neutrality on transfer of units of a scheme of a under the process of consolidation of schemes of MFs as per Sebi Regulations, 1996.

b) To levy a @12% as against current rate of 10% on additional income-tax payable by companies on distribution of dividends and buyback of shares, or by mutual funds and securitisation trusts on distribution of income.

c) Exemptions are being withdrawn on the following services:
 - services provided by a agent to a or assets management company;
 - distributor to an or AMC

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d) Services provided by agents, distributors and lottery agents are being brought to under reverse charge consequent to withdrawal of exemption on such services.

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