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Mutual funds seek capital gains relief in Budget

Business Standard

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January 21, 2026

The mutual fund (MF) industry has sought changes to the taxation of long-term equity investments in its recommendations for Budget 2026-27.

- KHUSHBOO TIWARI

It proposes higher exemption thresholds and concessional treatment to encourage investors to remain invested for longer periods.

In its submission, the Association of Mutual Funds in India(Amfi) has proposed a differentiated tax structure for equity investments based on the holding period. It has suggested that equity investments held for more than one year and up to three years should be taxed at 12.5 per cent on gains exceeding %2 lakh ina financial year.

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