Afternoon dc

LTCG Tax to impede investments in MFs

The 10% tax on dividends declared by equity oriented mutual funds is still lower than the 30% tax on dividends by debt and liquid funds. However, this will reduce the mis-selling of Balanced Funds (holding > 65% equities) that declare a monthly dividend out of equity gains, but are misrepresented as ‘income’ products. Kunal Bajaj, CEO & founder,