Business Standard

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

MF industry wish list also features clarity on segregated toxic assets

mutual funds

Representative Image

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

Don't miss the most important news and views of the day. Get them on our Telegram channel

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to