"Taxation on capital in India is from several sources and at the marginal rate it adds up. You have the corporate tax rate, you have the dividend distribution tax rate, for income above Rs 10 lakh you have the marginal tax rate (depending on whichever bracket the people are in), then there is the securities transaction tax and a capital gains tax. This tax will also be applicable on mutual fund investments.Economists agreed that taxes could be one of the factors which has subdued investment. "Taxes have and will have an impact because it determines where investors put money but there are also other factors at play. The movement in both these is likely to result in an investment-GDP ratio which will go up," Patel said.

Source: Economic Times February 08, 2018 02:51 UTC