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Budget 2019: MFs want reversal of LTCG tax; seek clarity on toxic assets

MF industry wish list also features clarity on segregated toxic assets

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Jash Kriplani Mumbai
The mutual fund (MF) industry has sent its Budget wish list to the finance ministry, seeking clarity on the tax treatment of toxic assets held under a segregated portfolio and asking for long-term capital gains (LTCG) tax exemption for equity-oriented schemes.

The LTCG tax was levied on equity-oriented funds last year. The industry body — Association of Mutual Funds in India (Amfi) — pointed out that the introduction of LTCG tax places MF products at a disadvantage vis-à-vis unit-liked insurance plans (ULIPs).

“With high commissions and incentive structure in the life insurance sector, retail investors could be lured away by

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First Published: Jun 27 2019 | 8:46 PM IST

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