This interim budget, quite a few industries are expecting relief, specifically for the Mutual fund industry, there is a hope that the government may rollback long term capital gains tax on equity funds. Piyush Goyal, the interim finance minister is scheduled to present the budget today.
The finance minister Arun Jaitley had re-introduced LTCG tax on equity funds last year. He taxed long term capital gains of over Rs 1 lakh at a flat rate of 10 per cent.
There is a view that the government may rollback LTCG tax since the amount collected is not significant,” says a senior official at a private sector mutual fund as per media reports.
However, unlike the previous budgets, the mutual fund industry is not expecting any big sops from the government. “It is not clear whether the government would make any big announcement since it is going to be an interim budget. Anyway, we are not expecting any major announcement for the mutual fund industry this time,” said the mutual fund official as per ET report.
However, many industry players believe that they might indirectly benefit from a likely basic tax exemption limit in the budget. The basic tax exemption limit is currently Rs 2.5 lakh. They also believe that the government may offer some tax reliefs in the form of increasing basic exemption limit or enhancement of tax slabs to lure the middle-class voters in its last budget.
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