The mutual fund (MF) sector wants the government to allow all investments of three years or more in debt schemes to qualify for deduction under the Income Tax Act.
It also wants all schemes investing at least 80 per cent of their corpus in equities to provide an equity-linked savings scheme (ELSS) option, to qualify for tax sops under the Act.
These suggestions are some proposals for the next Union Budget, by the Association of Mutual Funds in India (Amfi). These will go this month to the finance ministry. ELSS is a separate category of open-end, diversified equity schemes with a three-year lock-in. At present, only investments in ELSS qualify for deduction.
