Budget 2024-25 proposes Withdrawal of 20% TDS rate on repurchase by

The Budget 2024-25 proposes eliminating the 20% TDS (Tax Deducted at Source) rate on repurchases by mutual funds and Unit Trust of India (UTI). Previously, investors faced this rate on capital gains from mutual fund repurchases. The withdrawal aims to simplify tax procedures and potentially attract more investments into mutual funds. The proposal reflects an effort to enhance the attractiveness of mutual fund investments by reducing the tax burden on repurchases, which could positively impact investor behavior and market liquidity. The change, if enacted, will be effective from the financial year 2024-25, marking a significant shift in the taxation of mutual fund transactions.