The Association of Mutual Fund of India (AMFI) has released a 15-point proposal for Union Budget FY 2025-26 requesting restoration of long-term indexation benefit for debt schemes which withdrawn in budget 2024 and earlier tax rates on capital gains, amend definition of equity oriented funds to include fund of funds investing in equity overseas funds.

Here are a few important points made by AMFI in its proposal to the union ministry:

1. Request to restore the long-term indexation benefit for debt schemes of mutual funds which was withdrawn in the Budget 2024

AMFI has requested to revisit the withdrawal of indexation on long term debt investments and restore the status quo ante by amending the tax laws re-introducing the indexation benefit on long term capital gains from debt funds in respect of all investments in debt funds made upto 31st March 2023.