Archive · 24 Jan 2026
Amfi Seeks Tax Relief for Debt MFs
The Association of Mutual Funds in India (Amfi) has asked the government to bring back special tax benefits for debt mutual funds.
These benefits were taken away in 2023, which made people less interested in investing in these funds.
Amfi wants the government to tax gains on debt funds held for over three years at 12.5% or 20% with indexation.
This will help older people who need stable income and make the corporate bond market stronger.
Amfi also suggested new ideas like a Debt-Linked Savings Scheme (DLSS) with a five-year lock-in and making it easier to invest in equity-linked savings schemes (ELSS).
They also want to allow all mutual funds to offer pension schemes with the same tax benefits as the National Pension System.
This will help more people save for retirement and reduce the burden on the government in the future.
Amfi seeks restoration of LTCG with indexation benefits for debt mutual funds, withdrawn in 2023.
Proposed tax rates of 12.5% or 20% with indexation for debt funds held over three years.
Introduction of a Debt-Linked Savings Scheme (DLSS) with a five-year lock-in and a dedicated tax deduction.
Call for parity in taxation across different mutual fund structures, including fund-of-funds (FoFs).
Recommendations for relaxation of rules governing equity-linked savings schemes (ELSS) and separate tax deduction under the new personal tax regime.
- Who
- Association of Mutual Funds in India (Amfi)
- What
- Seeking tax relief and reforms for mutual funds
- When
- Not specified
- Where
- India
- Why
- To revive investor interest, support senior citizens, and strengthen the corporate bond market
- Organization
- Association of Mutual Funds in India (Amfi)
- Proposal 1
- Restoration of LTCG with indexation benefits for debt mutual funds
- Proposed Tax Rates
- 12.5% or 20% with indexation for debt funds held over three years
- Proposal 2
- Introduction of a Debt-Linked Savings Scheme (DLSS) with a five-year lock-in
- Proposal 3
- Parity in taxation across different mutual fund structures
- Proposal 4
- Relaxation of rules governing equity-linked savings schemes (ELSS)
- Proposal 5
- Allow all mutual funds to launch pension-oriented schemes with tax treatment similar to the National Pension System
- Proposal 6
- Exemption for intra-scheme switches
