In its latest proposal to the Modi 3.0 government, AMFI has suggested several changes to enhance investment opportunities and tax benefits for investors.
#budget 2024, #amfi, #financeminister
~PR.274~ED.103~HT.334~
#budget 2024, #amfi, #financeminister
~PR.274~ED.103~HT.334~
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00:00Welcome back to our special coverage on the upcoming Union Budget 2024. I am Shravani
00:08Sinha and today we are driving into some crucial recommendations from the Association of Mutual
00:13Funds in India or AMFI. In its latest proposal to the Modi 3.0 government, AMFI has suggested
00:20several changes to enhance investment opportunities and tax benefits for investors. First, AMFI is
00:26pushing for partly between debt funds and debentures. Currently, capital gains on debt-oriented
00:31mutual funds held for over three years are taxed at the investor's income slab rate. AMFI recommends
00:38a flat tax rate of 10% without indexation for these gains, similar to debentures. This change
00:45aims to make debt funds more attractive to investors by offering a more favorable tax regime.
00:51Next, AMFI proposes a clearer definition for equity-oriented fund of funds or FOFs.
00:57They suggest that FOFs investing at least 90% in equity-oriented mutual fund schemes
01:04should enjoy the same tax benefits as direct equity investments. This aims to promote a
01:10diversified investment approach while maintaining tax advantage for these funds. In retirement
01:16planning, AMFI recommends the introduction of a mutual fund-linked retirement scheme.
01:21This scheme would allow mutual funds to launch pension-oriented schemes with tax benefits similar
01:28to national pension schemes. AMFI suggests granting these schemes exempt-exempt-exempt
01:33status, meaning contributions, accumulations, and withdrawals would all be tax-exempted.
01:39This could provide tax incentives for long-term retirement savings through mutual funds.
01:44For fund managers in the International Financial Services Centre in Gift City,
01:50AMFI seeks to simplify tax regulations. They propose that managing an offshore fund from
01:56Gift City should not create a business connection or tax residency for the offshore fund in India.
02:03This aims to attract offshore fund managers to Gift City by reducing regulatory burdens.
02:08Finally, AMFI suggests the creation of debt-linked savings schemes, or DLSS.
02:14Similar to the equity-linked savings scheme, DLSS would offer tax-reduction benefits under
02:19Section 80C of the Income Tax Act of up to Rs 1.5 lakh. This new scheme would cater to
02:26conservative investors preferring debt instruments, providing a tax-saving investment option,
02:32and promoting growth of the debt-mutual fund market in India.
02:36These comprehensive proposals by the AMFI aim to create a more investor-friendly environment
02:42and stimulate growth in the mutual fund sector. As the government reviews these recommendations,
02:47investors and the mutual fund industry will be watching closely
02:51to see how these changes could impact their investment strategies in the upcoming budget.
02:56Thank you for joining us today. Stay tuned for more updates on the Union Budget 2024.
03:01We'll see you next time.
03:06you