For Quick Alerts
For Daily Alerts

Interim Budget 2019-Govt May Roll Back LTCG On Equity Mutual Funds


In the Union Budget 2018, the government re-introduced long term capital gain or LTCG tax on equity above Rs. 1 lakh in a financial year at a flat rate of 10%. But as the tax collection due to the above provision resulted in very insignificant collection for the mutual industry as a whole, the sector sees a chance that in view of the scenario, the government may roll back LTCG tax on equity mutual funds.

Interim Budget 2019-Govt May Roll Back LTCG On Equity Mutual Funds

In the budget speech last year, Arun Jaitley said, "In view of grandfathering, this change in capital gain tax will bring marginal revenue gain of about Rs 20,000 crores in the first year. The revenues in subsequent years may be more".

Furthermore, given the Union Budget 2019 due to be announced at 11:00 am by interim Finance minister, being an interim budget, the mutual fund industry unlike previous budgets is not expecting any major sops. In the previous budgets though the industry expected to include the debt mutual fund category within the contours of the section 80 C investments that provide a deduction from the gross income to the extent Rs. 1.5 lakh in a year.

Nonetheless, an increase in tax exemption or change in tax slabs is expected to work in the favour of the mutual fund industry.

Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more