Higher capital gains tax to hit small investors

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.