Investor interest in arbitrage funds has seen a spike since the long-term holding period for debt funds was increased from one to three years. Since arbitrage funds are treated as equity funds, their holding period for long-term capital gain is one year. Long-term capital gain from equity is tax-free (short-term capital gain is taxed at a concessional rate of 15%). Equally importantly, the dividend income from equity does not attract dividend distribution tax.
India will be superpower by 2047, but not high-income economy: Martin Wolf
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