The proposals in the Union Budget hint that the government will use the mutual fund (MF) route more aggressively to meet this year’s Rs 1-trillion-plus disinvestment target. It has proposed tax exemptions to exchange traded funds (ETFs) that have central public sector enterprises (CPSEs) as the underlying.
These ETFs will get the status of equity-linked savings schemes (ELSS). Additionally, the Budget has proposed extending the concessional tax rate of short-term capital gains to equity-oriented fund of funds (FoF) that are set up for disinvestments in state-owned companies or ...
