Through your columns I would like to welcome the long overdue withdrawal of exemption of income tax for mutual funds on CFS income. While the individuals end up paying 10% and companies 35% tax on their CFS income respectively, it is not fair to give this exemption to mutual funds which should earn their management fees through their competence and expertise rather than on any tax advantage.
At least individuals should have a level playing field, as far as their direct participation in the CFS market is concerned. In fact, mutual funds should not have any tax advantage on any source of income at least vis-a-vis an individual. I hope this time CBR will not be pressurised for withdrawal of this measure like it happened last year.