If you hold Majesco share then you better sell it right now

If you hold Majesco share then you better sell it right now rather than waiting for dividend.

The difference in the tax outgo can be quite stark. Let us assume an investor purchased Majesco shares at Rs 300. If he sells at Rs 1,000, his capital gain will be Rs 700. If the shares were bought more than a year ago, the tax on the gain will be Rs 70 (10%). If bought less than a year ago, the tax will be Rs 105 (15%). But if he gets the dividend, the entire Rs 974 will be taxed. If the investor is in the 30% bracket, he will have to pay Rs 292 as tax. HNIs will pay more due to surcharges on tax.

Super rich taxpayers are not the only ones who should take note. Investors with income below Rs 5 lakh a year, who escaped the tax net due to the relief under Section 87A, also need to worry. The dividend income is added to total income, and a big payout could push their incomes beyond the tax free threshold.