The mutual fund industry has sought a tax exemption for equity investors in the upcoming Budget to "encourage long-term investment".
"It is requested that listed equity shares or units of equity-oriented fund schemes be exempted from [long-term] capital gains tax (LTCG) if the equity shares or mutual funds units are held for at least three years," the industry stated in its wishlist for Budget 2023.
Justifying the proposal, industry lobby the Association of Mutual Funds in India (Amfi) said the 10 per cent LTCG tax on equity schemes is at times higher than the effective tax on debt investments post