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Budget 2023
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Union Budget 2023: AMFI asks for no LTCG on units of equity funds if held for 3 years

One of the demands if for uniform taxation of capital gains from mutual funds and Unit-Linked Insurance Plans issued by insurance companies.

January 16, 2023 / 09:05 AM IST

The Association of Mutual Funds In India (AMFI; the mutual fund industry's trade body) has unveiled a lengthy pre-budget wishlist including lower taxes and tax parity with other investments. AMFI also wants easier regulations for investors.

Tax parity with insurance policies

The mutual fund industry is seeking uniform taxation for capital gains from mutual funds and Unit-Linked Insurance Plans (ULIPs) issued by insurance companies.

Compared to 10 percent tax payable on capital gains on equity mutual funds, gains from ULIP are tax-free if the sum assured is at least 10 times the premium paid, the money is withdrawn after a lock-in of five years and the premium paid is below Rs 2.5 lakh.