The country's largest insurer LIC on Tuesday said it will pump in about Rs 10,000-crore in the stock markets by March-end, taking its annual equity investment to Rs 60,000 crore this fiscal. LIC's investment in the equity market so far has already crossed Rs 50,000 crore and expect to close the fiscal (2009-10) with an investment of Rs 55,000-60,000 crore. During 2008-09, LIC invested Rs 40,300 crore in the equity market, Mr Mohanraj said. This fund infusion in the market by the country's biggest domestic financial institution boosted the sentiment at bourses, which witnessed volatility, especially after the collapse of Lehman Brothers in America in 2008.
DDT is deducted when a non-equity fund declares dividends. Equity and balanced fund dividends are tax-free The AMC is correct to deduct the dividend distribution tax (DDT) as it is mandated by tax laws. DDT in mutual funds is deducted every time a non-equity fund declares dividends. Equity fund and balanced fund dividends are tax-free . It is possible that you have invested in a non-equity fund for the first time or have received the dividend under a non-equity fund for the first time. That is why this is the first occasion when you have come across DDT. The rate at which non-equity schemes deduct DDT has also gone up after the July 2014 budget. This is due to a change in calculation methodology. Earlier, if the fund has to declare a dividend of R 100, it used to make a provision for R 128.3, paying R 28.3 to the taxman and distributing the balance to the investor. This allowed the investor to bear less tax since the effective tax rate was 22.07 per ce...
