The levy of higher capital gain tax on investment might eat into the periodic return on investment in mutual funds, according to A. Giri of Kumbakonam, a Mutual Fund Investment advisor and MF distributor.
According to him, the hike would greatly hit small investors, particularly senior citizens who had invested in mutual fund schemes to get a periodic return for their livelihood. Hence, the long-term capital gain tax should be maintained at 10% and the exemption limit should be increased to ₹2 lakh, he added.
