The valuation is worsening

We have a special treat today. Kimi has written a guest post for us.

Kimi or Krishnaraj Venkataraman is based out of Bangalore and he would welcome comments, especially if you think he has made an error, at

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One reply on “The valuation is worsening”

I perfectly agree with the whole analysis and analogy.
I am often perplexed why people want dividends ( which is subject to DDT – currently @ 20.358%). Whether Government wants to ‘tax’ dividend is a different matter. Like what used to happen earlier, all dividends were ‘taxable’ in the hands of the recipient as per her individual tax slab. Which used to be more tax efficient as all recipients would not fall under highest tax slab.
Even I am more perplexed when people opt for ‘regular dividends’ or ‘re-investment of dividends’ in mutual funds also. While not understanding that all ‘dividends’ are subject to DDT. Why people simply do not opt for ‘growth’ option and redeem some units (even a fraction is allowed) as and when they need money for their consumption or otherwise.
Of course, senior citizens money requirement is different in terms of regularity, etc. and therefore that’s the price which they pay by government’s folly on tax front.
Government should go back to the earlier regime of making all dividends ‘taxable’ so that people pay tax as per their slabs – only the wealthy investors would get affected by this leaving a vast majority happy and their investment more rewarding.

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