The move to impose tax on long-term capital gains as well as dividend distribution could pose as a small hurdle for investment flows into the mutual funds industry experts said.
According to Budget tabled in the parliament, investors will have to pay 10% tax on distributed incine from equity-oriented mutual funds.
Dividend schemes are now slightly disadvantaged as opposed to growth schemes as LTCG below Rs. 1 lakh is exempt from tax - Belapurkar said.
While he was wary of the capital gains introduction, Motilal Oswal AMC's cheif executive Aashish Somaiyaa said he is "pleasantly surprised with the nuanced and well-considered implementation"."Protecting all past gains up until January 31 was the right way to implement the same". Somaiyaa added