Equity markets have been in a tizzy ever since Union Budget 2018 imposed the 10.4% tax (including the cess and indexation) on long-term capital gain (LTCG) on equity mutual fund schemes and direct equities. While debt funds have been imposing a 20.6% LTCG tax (with indexation) after 3 years, equity funds were exempted, so far, from LTCG tax—if you had held your mutual fund units for at least 1 year. This exemption has been around since 2004. But LTCG tax is back for equity funds, though the holding period of 1 year—to distinguish long-term and short-term gains—remains the same, going forward. If you have been planning for your financial goals using mutual funds, it’s important to understand how LTCG will impact your portfolio.
75 years to reach per capita income of $2730, will take only 5 years to add another $2000, FM Sitharaman
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