Even though SEBI opened the door for private equity firms to back mutual funds over a year ago, they're still not biting. The shaky market and tough regulations are making PE firms play it safe, leaning more toward buying existing companies instead of starting new funds.
So, the new capital gains tax rules from the Union Budget 2024 are shaking things up for mutual fund investors. Short-term capital gains tax is now 20%, up from 15%, and long-term tax went from 10% to 12.5%. But hey, the long-term gains exemption limit just got a boost from Rs 1 lakh to Rs 1.25 lakh!
Summary The Association of Mutual Funds in India (AMFI) has called on the government to reconsider recent budget proposals affecting debt mutual funds. The budget aims to amend Section 50AA of the Income Tax Act, redefining 'Specified Mutual Funds' and altering their tax treatment. The new definition would classify debt mutual funds as short-term capital assets regardless of the holding period, thus impacting the tax rates significantly. AMFI argues this change would disadvantage investors by eliminating long-term capital gains benefits for debt…