The Association of Mutual Funds (AMFI) in India has offered its suggestions for the upcoming Union Budget 2022-2023. Among several points, the industry body has called for “mitigating hardships” of retail taxpayers and NRIs. Other suggestions include putting MF unit-linked insurance plans (ULIPs) on the same playing field in terms of tax treatment, and the introduction of low-cost, lower-risk tax-exemption-linked debt-linked savings schemes (DLSS).
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The AMFI report brings up six major areas that need to be addressed:
In total, the report contains 23 suggestions or requests for clarification.
The AMFI report states that one of the changes that should be made in the upcoming budget is the rationalisation of a uniform surcharge rate of 10 percent on TDS in respect of NRIs for the amount paid by mutual funds. Currently, NRIs are charged a surcharge of 10-37 percent depending on their income from mutual funds.
The report also adds that the budget should increase the threshold limit for withholding TDS on income from mutual funds from Rs 5,000 to Rs 50,000 p.a., to bring it in line with the threshold limit of fixed deposits, which currently sits at Rs 40,000.
The entire AMFI report can be accessed here.
Also read: Understanding mutual fund taxation
(Edited by : Shoma Bhattacharjee)
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