Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: cpt :: form 3cd :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT RATES :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment
Direct Tax »
 Salaried taxpayers to get SMS alerts for TDS deductions
 Salaried tax payers to get SMS alerts on TDS deductions
 Mumbai zone direct tax collection flat in H1 FY17
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT

Funds count on FM to offer tax sops to revive investor interest
February, 04th 2013

The mutual fund industry, weighed down by heavy redemptions, is hoping investors will return if the government goes ahead with a proposal to provide fiscal incentives and allow them to launch long-term retirement or pension schemes.

Local fund houses, which manage Rs 7.80 lakh crore of assets, are waiting to see if the government will approve plans by mutual funds to offer pension schemes with tax benefits to help boost business.

The recent rebound in stocks has prompted thousands of investors to exit schemes they had entered four years ago when the markets were high only to lose money after the global financial meltdown.

Asset management companies have reported investor folios have declined by as much as 60 lakh in the last three years. New regulatory norms providing for direct investment by large institutional investors — cutting out intermediaries — will also impact the industry, which banks on some of the top metros and cities to draw in a pool of funds.

That is why mutual funds are waiting for the budget, hoping for tax breaks and possibly for the government to nudge state-run companies sitting on a cash pile to park part of their funds in mutual fund schemes.

"The government should extend tax benefits to promote long-term investments in mutual funds through pension and retirement-oriented products, which will help increase retail particip- ation," said Nimesh Shah, MD and CEO, ICICIBSE 1.95 % Prudential AMC.

The industry is also pitching for a pension scheme under the New Pension Scheme with tax benefit besides amendment to the IRDA Act to allow insurance companies to invest through asset management companies. Currently, subscribers who invest in NPS schemes are eligible for a tax deduction of up to Rs 1 lakh.

"Expansion in the scope of the Rajiv Gandhi Equity Savings scheme, and rationalisation of dividend distribution tax and long-term capital gains tax in debt schemes could help mutual funds bring in long-term resources in both equity and debt capital markets in tune with national priorities," said Debasish Mallick, MD & CEO, IDBIBSE 0.28 % Asset Management.

SBIBSE 0.17 % Mutual Fund chief investment officer Navneet Munot said the finance minister should take measures to ensure household savings start moving back to financial markets, reducing the country's vulnerability to external flows.

"The policy environment must be conducive for enhancing savings and channelising them into productive uses through a vibrant capital market," he said. Mutual funds have been seeking approval for products on the line of the 401K Plan, popular in the US as a longterm investment option offering tax breaks.

"We expect the finance minister to provide clarity on double taxation issues. Currently, when domestic fund managers are managing overseas funds from the country, they are taxed in both the countries," said A Balasubramanian, chief executive officer, Birla Sun Life AMC. Fund houses also want double taxation of securities transaction tax, or STT, to be done away with.

Currently, STT is levied on investors while redeeming units of an equity mutual fund even though the AMC also pays STT on every buy and sell transactions. The argument is this adds to the fund's expense ratio and, in turn, hurts investors.

The industry says infrastructure development funds launched by asset management companies should be given tax benefits similar to those enjoyed by NBFCs gets of a lower withholding tax of 5%. Fund houses also want the government and the regulator to dispense with the need to insist on a permanent account number or PAN Card requirement for qualified financial institution or QFIs.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions