Please find our in-house analysis of Dividend vs Systematic Withdrawal Option as per the new tax regime effective Budget 2018.
IN the below analysis a real life example of a funds Net Asset Value, Dividend paid and Growth is assumed. In the Dividend Payout illustration, dividends paid out are assumed after DDT in the new tax regime. In the SWP illustration, a fixed withdrawal is assumed and capital gains under the new regime (FY18-19) is considered.
Under the new tax regime LTCG rate of 11.96% or 11.44% & DDT rate 11.648% are almost similar, hence the post tax returns are also almost similar- assuming similar cash flows are considered in both the situations.
Geeta C and Dilzer Research Team.