daily dividend reinvestment vs monthly dividend reinvestment

In my post http://kaipathoughts.blogspot.com/2013/01/creating-systematic-transfer-plan.html I was thinking about implementing STP using monthly dividend plan vs daily dividend plan. Dividend plan was needed to save on taxes as the dividend distribution tax is less than Short Term Capital Gain tax for tax payers of higher slabs. Dividend reinvestment plan is preferred to make sure that dividend is participating in a higher yield instrument than in a savings bank.
Advantage of monthly dividend plans are less paper work due to fewer reinvestments and slightly higer yield as tax is paid at the end of month rather than daily.
But on closer inspection daily dividend plans have lesser paper work. this is due to the way the dividends are declared. Most of the plans are maintaining constant NAV by declaring daily gains as dividend. So after entire units are redeemed at the end of the STP, there will be no gains or no losses. So no capital gains or losses to worry about or doing complex calculations for dividend stripping. As for as the yield loss due to early payment of tax is concerned my calculation show the difference to be less than 0.02% which is not really much unless the amount involved is crores (10s of millions) of rupees.
So Daily Dividend Reinvestment plans for STP is the final decision