With the Union Budget approaching on February 28, industries have put forth their wishlists. Here is what the mutual funds industry wants:
- Dividend distribution tax (DDT) be drastically reduced, and the security transaction tax (STT) abolished.
- Tax exemption limit under Section 80 (C) should be raised to Rs. 3 lakh from Rs. 1.50 lakh. A separate slot of Rs. 1 lakh should be made available under section 80 (C) for investment in equity-linked savings schemes (ELSS).
- From tax relief perspective, retirement schemes of mutual funds should be on a par with NPS (National Pension Scheme) and the annuity schemes of insurance companies.
- A new scheme for investors be announced replacing the Rajiv Gandhi Equity Savings Scheme (RGESS).