Budget 2022: MF industry seen benefiting with digital assets under tax net

Move will help more millennials come into MF fold; asset management companies also welcome surcharge rationalisation

The Finance Minister's announcement to tax virtual digital assets is seen as a boost to the Rs 38-trillion mutual fund (MF) industry, as it will help more millennials come into its fold. Officials in the asset management industry also welcomed the announcement of surcharge rationalisation.

"Despite the popular expectation of tax concessions for middle-class income-tax payers to push higher domestic savings, this budget has been different in not changing tax rates or slabs. Taxation on gains from the digital asset will help curb speculation and should help channelise savings into well-regulated long-term investments like MF," said Vishal Kapoor, CEO, IDFC AMC.

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