MFs seek tax relief on dividend income

Though there are 258 schemes operated by 34 funds in the country today, they have been able to mobilise only Rs 68,000 crore in the past decade, Kurian said. This is primarily owing to lack of a proper treatment to the dividend incomes from these schemes, he said.

The association asked for an increase in the tax-exemption limit in ELSS funds from the existing Rs 10,000 to Rs 30,000. It also urged the Government to provide tax holiday up to Rs 40,000 investment in the pensionfunds, he added.

Kurian said Amfi had suggested the amendment of the mutual-fund regulations to provide a nomination authority for private mutual funds. At present, only the public-sector mutual funds like Unit Trust of India, Life Insurance Corporation, State Bank of India, and General Insurance Corporation are enjoying this facility.