Kolkata, Feb 18: The country’s mutual fund industry is seeking tax sops from the forthcoming Union Budget.
“The industry has asked for separate concession over and above the Rs 1.5 lakh deduction under section 80C for ELSS and National Pension Scheme,” industry body AMFI Chairman Sundeep Sikka said here today on the sidelines of the ICC organised mutual fund summit.
“The need for industry is long term money. This (additional concessions) will boost long term flows into the capital market,” he said.
“The Finance Ministry should also consider tax concessions for unit linked pension plans under section 80CCD of the Income Tax Act,” Dinesh K Khara, Managing Director and CEO of SBI Mutual Fund said. The section currently provides exemption of upto 10 per cent of salary contributed by the employee under National Pension Scheme.
“The matter is under evaluation by the CBDT (Central Board of Direct Taxes). We are hopeful of some announcement in the budget,” Khara said.
Sikka said that the industry is driven by the growing number of investors from the B15 cities. Total MF investor accounts could reach ten crore accounts over the next five years from the 4 crore at the end of December, he said.
The total assets under management of the industry was Rs 11,81,356 crore at the end of January.