Ahead of Budget, Amfi calls for tax parity between debt securities, MFs

At present, units of debt-oriented MFs have a minimum holding period of 36 months to qualify as long-term capital assets

Ahead of the Union Budget for financial year 2022-23 (FY23), the Association of Mutual Funds in India (Amfi) has made a slew of proposals, including bringing in uniformity in taxation of listed debt securities and debt MFs and allowing MFs to launch pension schemes with the same tax treatment as the National Pension Scheme (NPS).

“It is only logical and fair to bring parity in tax treatment for direct investment in listed debt securities and indirect investment in the same instruments through debt-oriented mutual fund schemes. This parity between direct investments in a listed security (by corporates and HNIs) and indirect