Budget 2014: Association of Mutual Funds of India seeks dedicated tax slabs for mutual fund investments

MUMBAI: A top body of mutual fund industry has urged the new Government to earmark a separate slab for MF investments along with an increase in the income tax slabs for individual investors in the upcoming Budget.

Finance Minister Arun Jaitely is likely to present the first Budget of the Narendra Modi Government in early July and like other sectors, the Association of Mutual Funds of India ( AMFI), too, has come out with its wishlist.

"We have urged the Government to increase the income tax slabs. Within the total slabs, we have also requested the Government to dedicate some amount for the MF investment only," AMFI Chairman Sundeep Sikka said.

Sikka, who heads Reliance Mutual Fund, said the industry has sought capital gain benefit for select MF products.

Talking about other demands, AMFI Chief Executive HN Sinor said the industry body has requested for tweaking of Rajiv Gandhi Equity Savings Scheme (RGESS).

"We have also requested for MF-linked pension plans, which will help in channelling retail money into capital market," Sinor said.

The industry, which crossed Rs 10 lakh crore of average assets under management (AUM) in May, is hopeful of attracting more retail investors into the market going ahead.

AMFI is the apex body of all the registered Asset Management Companies.