June 12, 2022 (MLN): The Mutual Fund Industry has demanded the government for the continuation of tax credit exemption.
As per existing tax laws, an individual is entitled to tax credits for making investments in Initial Public Offering, Life Insurance policy, Mutual funds, health insurance or by making contributions to an Approved Pension Funds resulting in reducing tax liabilities.
The Bill proposes to omit these tax credits, due to which the individuals will not be able to claim tax credits and hence reduce their tax liabilities.
This is also likely to affect the investment in mutual funds and the insurance sector.
The salaried class is one of the major contributors toward investment in the mutual fund, life insurance policy, health insurance policy and pension fund, which may now not be considered as attractive products by salaried individuals.
The salaried class after investing in mutual funds was liable to reduce their tax liabilities or reduces annual tax payment improving lively hood.
