Budget 2026: AMFI Proposes Key Changes for Mutual Fund Investors

• AMFI suggests reintroducing indexation benefits for Long Term Capital Gains (LTCG) on debt mutual funds, which were withdrawn in Union Budget 2024.
• The association recommends launching a Debt-Linked Savings Scheme (DLSS) with a five-year lock-in and a separate deduction facility outside Section 80C.
• AMFI seeks changes in tax rules for Fund of Funds (FoFs) investing in equity mutual funds, currently treated as non-equity funds.
• It also proposes increasing the tax-free LTCG limit for equity funds to boost long-term investments.
• Reintroduction of deductions for Equity Linked Savings Schemes (ELSS) under the new tax regime is also a key recommendation.

Why It Matters: AMFI has submitted several proposals to the government to boost mutual fund investments and long-term savings.