Besides they are subject to tax on long-term capital gains at 20 per cent of capital gain after allowing indexation benefit or at 10 per cent flat without indexation benefit, whichever is less and short term capital gains are subject to tax as per the tax bracket applicable to the investor. Such differential taxation acts as a disincentive for mutual funds investments.
Credit records were created for 13 million enterprises and nearly 600 million natural persons, including information of their borrowing activities and law-compliance in environmental protection etc, facilitating their economic and financial activities and promoting economic and social harmony. Banking financial institutions have included inquiry into the credit information system as an indispensable step in pre-lending examination.