SEBI pitches for tax relief on MFs

India Infoline News Service | Mumbai |

SEBI has written to the Finance Ministry to consider various tax sops for mutual funds

In order to enhance retail participation, SEBI (Securities and Exchange Board of India) has requested the Ministry of Finance to consider various tax incentives for mutual fund industry and a final decision in this regard would be taken by the new government, according to a media report.
The SEBI had already approved these measures and has now written to the Finance Ministry to consider various tax sops for mutual funds. The regulator would push for implementation of these measures with the new government.
SEBI has suggested the government to enhance the tax exemption limit under Section 80C of the Income Tax Act from Rs 1 lakh to Rs 2 lakh to help make various mutual fund schemes eligible for such tax benefits.
The regulator also wants the Rajiv Gandhi Equity Savings Scheme to be included under the enhanced limit.
At present, Section 80C provides tax exemptions on investments up to Rs 1 lakh in various products, including certain mutual funds, insurance plans and provident fund.
The regulator has also suggested creation of a long-term investment product, Mutual Fund Linked Retirement Plan, with an additional tax benefit of Rs 50,000, the report added.
 

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