AMFI seeks same tax treatment for mutual funds as enjoyed by ULIPs December 24, 2020 × The Association of Mutual Funds in India has reiterated its long-standing demand to bring parity in tax treatment of mutual funds and Unit Linked Insurance Policies, both of which are investment products and invest in securities. Currently, ULIPs enjoy more tax benefits as compared to mutual funds in various aspects like no capital gains on switching, no STT (securities transaction tax) levied on the withdrawal proceeds from ULIPs, no income tax on the proceeds from ULIPs of insurance companies (including early surrender and partial withdrawals) subject to certain conditions.