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…