You are here: Home » Budget » News » Financial Sector
Business Standard

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 Income Tax Act so as to provide tax neutrality on transfer of units of a scheme of a mutual fund under the process of consolidation of schemes of MFs as per Sebi Regulations, 1996.

b) To levy a surcharge @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c) Exemptions are being withdrawn on the following services: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 mutual fund agent to a mutual fund or assets management company;

- distributor to an MF or AMC

Read our full coverage on Union Budget

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

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 28 2015. 13:29 IST