Tag Archive: frequently asked questions

Frequently Asked Questions (FAQs) – Taxation of Long Term Capital Gains (LTCG)

  1. What is the meaning of long term capital gains?
    Long term capital gains mean, gains arising from the transfer of long-term capital asset. The Finance Bill 2018 proposes to provide for a new long-term capital gains tax regime for the following assets:

    • Equity Shares in a company listed on a recognised stock exchange;
    • Unit of an equity-oriented mutual fund; and
    • Unit of a business trust.

    The proposed regime applies to the above assets, if the assets are held for a minimum period of twelve months from the date of acquisition.

  2. When will the tax be levied?
    The tax will be levied only upon transfer of the long-term capital asset on or after 1st April 2018.
  3. What is the method for calculation of long-term capital gains?
    The long-term capital gains will be computed by deducting the cost of acquisition from the full value of consideration on transfer of the long-term capital asset. (more…)

DIVIDEND PLANS – frequently asked questions


What are Dividend Plans in Mutual Funds?
Are Dividend Plans active due to rising market?
Who should opt for these plans? Does it help in Tax saving?

What are Dividend Plans in Mutual Funds?
The returns that an investor gets in a dividend plan, are of two types;

  • Value appreciation
  • Dividend