For regular income, systematic withdrawal plan is more tax-efficient option

With a tax incidence of 10% on dividend income, this is a good way to lower tax liability

From April 1, mutual fund investors who had chosen the dividend option in equity funds will have to pay a flat 10 per cent tax on the payouts they receive. Those who don't need the money should immediately shift to the growth option and redeem only when there is a need. Those who chose the dividend option because they needed a regular income should shift to a systematic withdrawal plan (SWP), which is a more tax-efficient option. 

In SWP, the tax is calculated only on the capital gains and not on the entire amount that is received from a fund.