The Sensex and Nifty came under selling pressure on Monday as Dalal Street gauged the impact of LTCG tax on equities amid lower Asian markets.

The Finance Secretary today said that if the entire world index has gone down by 3.4 per cent, naturally it would have ripple effect on Indian stock market also.

In Frequently Asked Questions (FAQs), it said the Budget for 2018-19 provides for taxing Rs 1 lakh and above of Long- Term Capital Gains arising from sale of shares held for over one year at a concessional rate of 10 per cent.

Mutual funds investments have seen a huge rise in inflows. Domestic funds had invested a staggering over Rs 1 lakh crore in the stock market last year, much higher than over Rs 48,000 crore infused in 2016 and more than Rs 70,000 crore in during 2015.

Brushing aside criticism of the newly announced mega healthcare scheme, Niti Aayog Vice- Chairman Rajiv Kumar has said it is a \"game changer.\"

Here's an FAQ on long-term capital gains taxation put together by CBDT

The Sensex fell up to 546 points to 34,520 level in early trade but recovered nearly 300 points to trade at 34828 level , still down 238 points. The Nifty was trading 85 points lower to 10,675 points. The index fell up to 174 points to 10,586 level.

In his Budget speech, FM Jaitley said, \"I propose to tax such long term capital gains exceeding Rs 1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31 January, 2018 will be grandfathered\" Jaitley said.

Finance minister Arun Jaitley told a news channel that the budget for 2018-19 estimates this tax collection during 2018-19 as Rs 20,000 as all earnings till January 31 this year are exempt from the tax under the grandfathering clause to avoid retrospective taxation.

The Finance Bill 2018 has further proposed significant changes in these taxation provisions relating to long term capital gain on transfer of equity shares in a company or a unit of an equity oriented fund or a unit of business trust.

Any profit or gain made after holding shares for more than one year is known an long term capital gain.

Traders and investors unwinded long positions in equities ahead of the April 1, 2018 cut off date when LTCG tax of 10% on equities will be charged. The upward revision to the fiscal deficit target to 3.3 percent from 3 percent for 2018-2019 also dampened sentiment.

While the Sensex fell up to 575 points to 35,331, Nifty fell over 190  points to 10,826 level. At 10:38  am, the Sensex was trading 578 points lower at 35,328 and Nifty was down 179 points to 10,837.

Considering Finance Minister Arun Jaitley's last budget ahead of the 2019 election, Business Today interviewed four mutual fund CEO and CIO to get their views on the budget and what should investors do now with the event being over.