Calls for Improved Social Security for Self-Employed Individuals and Tax Benefits for Mutual Funds

On Monday, the Self-Employed Taxpayers Federation of India (SETFI) made a compelling case for enhancing social security measures for self-employed individuals. The federation is urging the government to ensure that self-employed taxpayers receive pensions upon retirement and access to loans in the event of business losses. This appeal highlights the growing concern over the lack of adequate social security provisions for this group.

Need for Better Medical Facilities

In addition to retirement pensions and business loss loans, SETFI is also calling for improved medical facilities for self-employed individuals. During an event at the Udasin Ashram in Old Delhi’s Paharganj, a diverse group including businessmen, Chartered Accountants (CAs), lawyers, and doctors voiced their concerns regarding their social security and overall well-being.

AMFI’s Proposals for Pension-Focused Schemes

The Association of Mutual Funds in India (AMFI) has also made significant proposals to the government concerning mutual funds. AMFI is advocating for the introduction of Mutual Fund Linked Retirement Schemes (MFLRS) that would offer tax benefits similar to those of the National Pension System (NPS). The association has requested that the tax treatment for NPS and retirement-oriented mutual funds be harmonized by including these schemes under Section 80CCD of the Income Tax Act, 1961.

Capital Gains Tax on Mutual Funds

Furthermore, AMFI has proposed that capital gains from the redemption of debt-oriented mutual funds held for more than three years be taxed at a rate of 10% without indexation, aligning it with the tax treatment for debentures. The association is also seeking a revision of the short-term capital gains tax imposed last year on debt-oriented mutual funds with equity exposure of up to 35%.

Proposed Amendment to Section 50AA

To boost retail investor participation in bond markets, AMFI has suggested amending Section 50AA of the Finance Act, 2023. This amendment would align the tax treatment of debt funds with that of debentures and government securities, thereby encouraging greater investment in these areas.

For further updates on these proposals and their implications, stay tuned to [source of information].

(With PTI inputs)