Union Budget 2025: AMFI’s 15-Point Proposal to Boost Mutual Fund Investments
The Association of Mutual Funds in India (AMFI) made a 15-point proposal ahead of the Union Budget 2025-26 that aims to bolster mutual fund investments and improve investor confidence. The key points of the AMFI proposal are listed below.
- Indexation benefits should be restored for long-term debt fund investments made before March 31, 2023.
- Earlier capital gains tax rates should be restored for mutual funds.
- Definition of equity-oriented funds should be revised to include Funds of Funds (FoFs) investing 90 percent or more in equity-oriented schemes.
- The mutual funds should be allowed to launch pension-oriented schemes with tax benefits.
- Tax exemptions should be allowed for reinvested gains and mutual funds investing in infrastructure assets be considered ‘specified long-term assets’ under Section 54EC.
- Taxation provisions should be simplified for offshore funds that are managed by Indian portfolio managers to encourage foreign investment.
- Flat 10 percent surcharge on Tax Deducted at Source (TDS) for NRIs instead of a slab-wise structure.
- Debt-Linked Savings Schemes should be introduced on the lines of Equity-Linked Savings Schemes (ELSS), offering tax benefits and a 5-year lock-in period for investments in high-rated bonds.
- TDS threshold should be raised on mutual fund dividends from ₹5,000 to ₹50,000 per annum.
- ELSS investment should be allowed in any amount, rather than requiring multiples of ₹500.
- Mutual funds should be exempted from GST compliance related to securities lending transactions.