If your purpose for investing in Mutual Funds is for tax exemption, then u should quit investing in Mutual Funds and do farming instead as income from farming is 100% tax exempt!
It's difficult to stay away from noise but most of the Investors don't seem to understand so :
Firstly, Implementation of LTCG tax was long due, it is already there in majority of countries in the world; so nothing new has been Implemented here in India. Or waise bhi, when LTCG was not there for a long long time, Kitna fayda uthaya aapne iska ????
Secondly, we people will still be paying 10-30% Tax at our 6.5% Return generating FD's but ironically we have a huge problem with 10% Tax on Equity which is generating 15-25% Returns in out Portfolios !!! Is it a clever thing to do?
Thirdly, Some are saying that PPF will now gain popularity, I say Yes, it will but only for those who all along failed in their MATHS class in Schools. because MATHS says 15% is still > than 8%, even after Taxation.
We have a data on PPF vs Equity for last 20 Years which clearly shows that 20 lakhs Invested in PPF in last 20 Yrs is now approx. 58 Lakhs & 20 Lac Invested in Equity in last 20 Years is now more than 5 Crores, even after taxation it comes out to be 4.5 Crores.
Friends just tell me one thing, If tomorrow Income Tax rate changes to 40% will u stop working/earning ???
Of course Not right !!!
So stop focusing on noise, Focus on creating a large base to Capture that 15-20% CAGR in coming years.
Tax tabhi dena hai jab Kamai hogi !!! So think Rationally n Stay on the Course to your Financial Freedom.
