Finance Minister to mutual fund industry Nirmala Sitharaman coming from budget 2025 I have great expectations. The industry believes that if there is a change in tax rules, especially Debt and Equity Funds Investor interest will increase. Due to this, investors investing for long-term savings will give more preference to mutual funds.
There were changes in tax rules in 2023
- Current regulations for debt mutual funds:
- April 1, 2023 From, capital gains on debt mutual funds short-term capital gains It is believed.
- On this 20% tax Is imposed.
- AMFI’s proposal:
- On selling debt mutual funds after 12 months 12.5% tax Should be installed.
- this rule listed bonds As it applies to mutual funds, it should also be applied to mutual funds.
AMFI (Association of Mutual Funds in India) Says that to make India economically strong, the bond market will have to be promoted. for this retail investors It is very important to increase participation.
Demand for reduction in STT
mutual fund industry Futures and Options (F&O) Trading applicable on Securities Transaction Tax (STT) Has appealed to reduce.
- Increased costs in F&O trading:
- Arbitrage and Equity Savings Funds Do F&O trading for hedging.
- The cost of these funds has increased due to SEBI increasing STT on F&O trading.
- AMFI expects:
- CEO of AMFI Venkat Chalasani Says that the Finance Minister will pay attention to these demands.
- Arbitrage and equity savings funds will benefit from the reduction in STT.
It is necessary to promote investment in debt funds
- Current Status:
- Investors are mostly interested equity mutual funds Lives in.
- Investment in bond mutual funds is still limited.
- Demand for tax exemption for debt funds:
- Changes in tax rules may increase investor interest in debt mutual funds.
- From this debt market will also expand.
What to expect from Budget 2025?
- Tax Concession for Debt Mutual Funds:
- AMFI suggests that debt funds be given the same tax treatment as listed bonds.
- Reduction in STT:
- STT rates on futures and options should be reduced to the old position.
- Increasing retail investment in bond market:
- Tax changes could make bond mutual funds more attractive.
