Tax is a major factor when it comes to making investment decisions. In fact, many invest in certain funds just to ensure a lower tax liability.

When it comes to investment in equity markets or equity oriented mutual funds, the tax can get a little complicated. Why? Because you can have two sources of income from investing in stocks - dividends and profits.

This blog will attempt to improve your understanding of the tax matters associated with investments in equities.

The equity market is one of the most lucrative avenues for investment. This is mainly because of its potential to give you high returns. That’s the biggest reason why so many want to buy shares.

But then making up your mind about which company’s stock to buy can be a daunting task. Add to that the tax implications on the dividend income and gains.