No capital gains on equity plans, dividend tax at 5%

Its a mixed bag for equity investors from the new Direct Tax Code that was tabled in Parliament on Monday. This is because there would be no long-term capital gains taxes for equity products including mutual funds. Earlier, there was a proposal to levy a capital gains tax on it as well. Currently, there are no such taxes. What came as a disappointment though is the 5% dividend tax that would get levied on equity schemes and equity approved unit linked insurance plans. Earlier, there were no such taxes for equity schemes. For the purpose of capital gains tax calculations, ...

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