Kelkar recommends sweeping changes in fund taxation

The Government's 'Task Forces on Direct and Indirect Taxes', chaired by Dr. Vijay Kelkar, has recommended sweeping changes that will impact mutual fund investments. The biggest change is that short-term capital gains and interest income that funds generate will now be taxed in the hands of the funds themselves. Coupled with complete elimination of long-term capital gains tax on equity investments, this is likely to bring about a substantial change in the way mutual funds manage equity investments. While the exact impact of these recommendations de

This article was originally published on December 28, 2002.