Equity Mutual Fund Dividends are taxed 12.942% (not 10%): Here is how to avoid this

Budget 2018 has proposed that equity-oriented mutual funds be subject to a 10% dividend distribution tax (DDT) to ensure parity with the 10% LTCG tax on growth equity mutual funds.¬† If you include the surcharge and cess, the rate of dividend tax is 11.648% and if you add the¬†effect of “grossing up”, the full tax…

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Do not buy ULIPs because equity mutual fund LTCG will be taxed!

The day after Budget 2018 proposed LTCG tax on equity and equity oriented mutual funds, life insurers saw an opportunity to push ULIPS as the “go to” instrument now. Abandoning mutual funds in favour of ULIPS only to avoid the LTCG tax is like undergoing chemotherapy to shave a head¬†(Robin Williams*). In this post, I…

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Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1

It was announced in¬†Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10%.¬† Here is an illustration of how much long-term capital gains tax you need to pay on a long-term systematic investment in equity or equity mutual funds. This is part one where the LTCG tax after each year of investment…

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Budget 2018: Eight important but lesser known proposals + FAQ

Here are eight lesser-known, but important budget 2018 proposals. I have now updated the three budget articles posted yesterday. Please do have a look: UPDATE:¬†Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1 Long-Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) Budget 2018-2019: Long-Term Capital Gains from Equity to…

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Budget 2018-2019 Major Benefits to Senior Citizens!

Budget 2018 has a slew of benefits for senior citizens. Here is a list. Also see:¬†Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10% ‚Äď Implications New:¬†Long Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) UPDATE:¬†Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1 1:…

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Long Term Capital Gains Computation with base year 2001

Budget 2017 has proposed a slew of benefits related to long-term capital gains. The most important is the shift of the base year to be used for long-term capital gains computation for all asset classes.¬†Here is a summary and illustration of long-term capital gains computation with base year 2001. 1: Change in duration for computation…

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