MF industry seeks LTCG easing in commodity, gold ETFs, scrapping of STT

Wants holding period for computing long-term gains reduced to one year

The mutual fund (MF) industry is seeking a slew of relaxations from Finance Ministry in the upcoming Union Budget, including a reduction in the holding period for long-term capital gains (LTCG) in commodity and gold exchange traded funds (ETFs), scrapping of Securities Transaction Tax (STT) for investors in equity funds and ETFs and a reduction in the threshold limit of equity funds back to 50 per cent.

"In order to make gold and commodity ETFs more attractive, it is proposed to lower the holding period for LTCG purposes from three years to one year, as in the case of listed