Tax implication on Gold ETF, Gold FOF, E-gold and gold in physical form

Tax implication on Gold ETF, Gold Fund of Fund,  E-gold and gold in physical form

Tax implication on Gold Fund of fund and Gold ETF

 The Gold ETF or Gold Fund of Fund (gold savings fund which invest in gold etf) is classified under mutual fund and will be taxed as per non equity mutual fund taxation rules. 
  

Gains from Gold ETF will have the same treatment as Debt MFs.

Investor investing in Gold ETF need not pay wealth tax. 

 Long Term Capital Gains - if held for more than a year

LTCG of Gold ETFs and gold FoFs are taxed at 10% without indexation and 20% with indexation which ever is lower.

 Short Term Capital Gains - if held for less than one year

 STCG and taxed as per individual income tax slabs.

Investor has to pay taxes after redemption as per the tax laws applicable for non equity mutual fund. But, when the Gold ETF is redeemed for physical gold the taxation rules will be similar to that of physical gold.

Tax implication on e-gold

The e-Gold units will be treated as Gold for tax purposes. The units should be held for more than 36 months for availing the confessional tax treatment accorded to long term capital gains and for exemption eligibility under Section 54 F or 54 EC of Income Tax Act, 1956

You also need to factor in wealth tax implications. Gold and silver bars and coins as well as jewellery are liable to wealth tax.  You will  have to pay wealth tax on the market value of the electronic units lying in your account as on March 31 of each year, if the total value of your taxable wealth together with market value of e-Gold exceeds Rs 30 lakh.

The tax payable being 1% of the market value of the assets exceeding Rs. 30 lakh. Such tax is payable each year on the assets so held as on 31 March of that year.

 

Also refer

Tax implications on Fixed Maturity Plans
Tax Implications on mutual Fund Gains

How to manage your mutual Fund Investment!!

You feel truly blessed when your investment advisor take very good care of your investment in mutual funds.

But, things are not very same, so it is not right to blame your mutual fund advisor as after ban on entry load, Mutual Fund Advisor find very difficult to survive.

If he asks yearly or quarterly for managing your portfolio, it's good that you should pay him, but very few investors are actually ready to pay to distributor.

 

Now question comes in the absence of distributor how will you manage your mutual fund portfolio, if you believe your advisor is actually providing excellent services to you,  first option is talk to him, ask for fees (consultation or service charge) to handle your portfolio.

Another alternate is register for on-line access to all your mutual fund Investment, but for registering on line access:

1. Your Pan and KYC details are updated in your mutual fund scheme

2. Your email address is registered in that scheme.

If your pan number details and email address is registered and you are kyc verified then you can register(creating login id and password for your mutual fund investment) for on line access as this option is allowed in Birla Sun Life Mutual fund, Reliance Mutual Fund and Franklin Templeton Investments. But online registration is possible if you are sole applicant in that scheme, if you have joint holding in that scheme then you can't able to register online, but in such case you need to submit request (physical form) for online access.

On line access to your mutual fund investment is helpful in many ways as you can buy, sell, switch or change option of dividend easily and quickly.

Online access is not solution for your investment advisor but this helps you to some extent.

Now how to create online access

1. Visit the mutual fund website (where you have invested)

2. Click on online access

3. Download Application form for online access

4. Fill all the details such as your name, folio numbers, date of birth, email address and contact details.

5. Submit to nearest collection center.

I am also adding links of forms for online access (for PIN)

1.  HDFC Mutual Fund   HPIN Application Form 

HDFC Mutual Fund introduces , which enables you to transact online on https://investor.hdfcfund.com/mfonline/ 24 hours a day, 7 days a week, 365 days a year. On you can Purchase (if you have access to your net banking account),Redeem Switch, Register for Systematic Transactions (SIP / STP / FLEXINDEX / FLEXSTP) View your account details  View your portfolio valuation  Download account statements ……….Online!!! All you need to transact is :An existing folio, An email ID and HPIN (HDFC Personal Identification Number).

2. Birla Mutual Fund

You need to visit this link: Link for online access

3. Franklin Templeton Investment

If you have already invested in FT, register for online account access. 

New to Franklin Templeton :If you would like to invest with us, please fill up an application form and submit to any of our investor service centers. 

4. Reliance Mutual fund: 

check complete details here in this link for online transaction

5. DSP Black Rock Mutual Fund

 1. For existing Investors of DSPBRMF

2. If have pin and folio

3. If you are new Investor

Same process is applicable for most of mutual funds, so visit website of mutual fund and apply for online access.

Toll Free Helpline Numbers of Mutual Funds in India

Toll Free Helpline Numbers of Mutual Funds in India

How to rectify or change your name in mutual fund records in India?

Case 1:  When name is wrongly mentioned in Account Statement, but Investor mentioned correctly in Common Application Form

If you found mistake in your name in mutual fund statement and you have copy of acknowledgment (common application) where you mentioned your name correctly, in such case you can request them to rectify by writing email or even calling customer care or writing letter with a request to make changes by enclosing scan copy of common application form which you submitted at the time of purchase.

 Case 2: When name is wrongly written by the investor himself in common application form

If you found mistake in your name in mutual funds statement,  in order to rectify, you need to send a request letter, duly signed along with a copy of the PAN. The PAN number should match with the one already registered in the folio. 

The KYC document should be in the correct name, as requested by the investor, with proof of KYC verified status submitted. Some mutual funds may ask for an indemnity bond on plain paper. 

Format for Indemnity bond (Link of format in word document in Zip folder) 

Format in PNG Image

  Case 3: Investor want to make other changes in name(like want to add middle name)

Investors who need to include middle name / expand the initial may do so by sending a request letter duly signed, and submit a certificate from the banker, being the banker on record in the folio, confirming the account holder's full name.

A reference will be made to the copy of the PAN to verify the full name. Some funds may ask for an affidavit duly notarised in original on a Rs100 non-judicial stamp paper, stating the old and new names of the person, and also clearly specifying that both the names refer to one person. 

Case 4: Investor Who have Change their name and Recorded that in Gazatte

 Link of Indemnity bond
 
Investors who have changed their name and recorded it in the Gazette should submit the following documents to the mutual fund: 

• A request letter duly signed — the signature of the investor should be attested by the bank manager;
• A copy of the Gazette notification attested by a notary public;
• A copy of the PAN card reflecting the new name.

This would mean that the investor has to get the name change effected in the records of Income Tax before submitting the request to the mutual fund.

Some mutual funds ask for an indemnity bond on a stamp paper. The format of the bond would be available with the mutual fund and available to investors on request.

Investors should get the name change effected with the KYC Registration Agency, i.e., CDSL Ventures Ltd (CVL). Change request forms are available at the CVL website, and investors should fill in the form, specifying the change in name, and submit the required documents to CVL. Proof of KYC verification should be submitted along with the request.

Some funds may also request for a proof of change in name in the bank account. Investors should submit an original cancelled cheque leaf in which the unit holder's name is printed, or a copy of the bank statement / passbook duly attested by the bank manager. The name should match with the name in the request form. 

Case 5: Change of name post Marriage

Refer this for change of name post marriage

 Procedure for name change in mutual funds investment - post marriage!

Source:  Cams Investor Education Initiative

Forthcoming Dividends in Equity Funds (April 26, 2012 to April 30, 2012)

Forthcoming Dividends in Equity Funds (April 26, 2012 to April 30, 2012)

Revised Format for Declaration of Self Certification for Mutual Fund Distributors for F.Y.2011-12

In compliance with SEBI/ Amfi guidelines, Amfi registered distributors / IFAs need to submit a Declaration of Self Certification (SDC) for every financial year in the following April.

In case Self Declaration not submitted  before June 30, 2012 to AMC that is before the end of the financial year, or within 3 months from the start of next financial year then his brokerage will be suspended thereafter till submission and brokerage can be paid only if this Self Declaration Certificate is submitted and updated in our IFA / Distributor master towards the Payment Year 2012-13.


Also refer

Revised Self Declaration form for FY 2012-13

Format for Declaration of Self Certification 
 Save this file in word document 
*click on link to open and then save this file

The Revised Formats for Declaration of Self certification

1. Form A 

Format for Declaration of Self Certification for Corporate ARMFA who does not have sub brokers

2. Form No. A1

 Format for Declaration of Self Certification for Corporate ARMFA who has sub-brokers

3. Form B

Format for Declaration of Self Certification by ARMFA who is sub broker to be submitted to Principal ARMFA

3. Form C 

Format for Declaration of Self Certification for the ARMFA who is an Individual/karta of HUF

Also refer:

Process for change of address in mutual funds after KYC Compliant??

 How to change email address in mutual funds in India

WEF April 30 2012 , You can't change bank details with redemption request...

With effect from April 30 2012, You can't change bank details with redemption request.

These changes are pursuant to the recent circulars issued by SEBI as well as AMFI to mitigate instances of fraud, to reduce operational risks and to protect the interest of investors.

Forms for redemption and change of bank account request are now segregated so that two different requests are handled and executed separately for all investors. 

In other words, all  investors forms such as the common transaction forms, transaction slips or any other form containing redemption request will not have the facility to change the bank mandate or update a new bank mandate.

  Most important point here to note is that any redemption request received which also mentions a new and unregistered bank mandate or a change of bank mandate request (with or without necessary supporting documents), such bank account change may not be registered and considered for payment of redemption/ dividend proceeds.


For Change of Bank Account / New Bank Account with Redemption Request, investor need to Register for Multiple Bank Account Registration Form

Uniform Procedure for Change of Bank details, Change of Address

AMFI Best Practice Guidelines Circular No.26/2011-12

 

How to invest online in Gold Mutual Fund Scheme in India..

This Process is for existing investor who is KYC verified and if you have online access to your bank account and your bank is allowed for invest online in that mutual fund website then how to go ahead without having TPIN (transaction pin)

Some mutual fund Web sites allow you to invest on line. However, you must check if you have an account with the banks they have partnered with.

How to invest online in mutual fund scheme:

Take a look at step by step process which you can follow to apply on line in mutual fund scheme without having TPIN.

First is to visit website of mutual fund where you want to invest

Click for the link for on line Transaction (like in this example the transaction is processed in Kotak Mutual fund in Kotak Gold Scheme Growth.

After this you are transferred to your website of your bank and where you put your net banking details and confirm the transaction.

If transaction is processed successfully you will get confirmation of transaction with transaction Ref No, order No and your user transaction no.  the best is to  save or print screen confirmation of transaction for future reference.

(you will also get confirmation in your registered email address and mobile number)

Tax implication on sale of mutual funds as per budget 2012 (Financial Year 2012-13)

The rates are applicable for the financial year 2012-13 and are subject to enactment of the Finance Bill, 2012.

How to redeem Fixed Maturity Plans??

Fixed Maturity Plans (FMP's) are essentially closed ended debt schemes with a fixed Maturity. The tenure could be 30 days, 90 days, 180 or 365 days and even 3 to 5 years time frame.



Whether Exit is possible before Maturity
Though an investor is supposed to stay invested till maturity in FMPs, fund houses also list FMP on stock exchanges so,  yes, investors can exit if they need money urgently. 

When one exit before Maturity

However, liquidity is a problem. Though these schemes are compulsorily listed on the stock exchange, it’s not easy to exit a scheme before maturity as there are few buyers. So ensure that you are pretty certain you will not need the money for the duration of the FMP as this does not guarantee enough liquidity and attractive price. 

How one can redeem before Maturity
Investor wishing to exit may do so by selling their units through stock exchange, however FMP units cannot be directly redeemed from the fund, until the maturity date of the plan.

On Maturity, how will you redeem
On maturity, units will be redeemed on the basis of the applicable NAV on the date of redemption and your investment along with the appreciation is automatically returned back to you.(means directly credited to your registered bank account in that scheme, if direct credit option is available in your bank account else redemption warrant will be issued to you).

 

Also refer Taxability of Fixed Maturity Plans

Submission of Form 15G or Form 15H

Form 15G and Form 15H is Self declarations by the depositor not to deduct tax on the fixed deposits(mainly dividend /interest from securities, Interest on fixed deposits, Interest on units of National Saving Schemes)



Any one whose income is below the taxable limit has to fill form 15G / 15H and submit in the bank. You cannot submit the Form 15G/H if your income is taxable.

Form 15G and Form 15H are forms to be filled by an Individual or a person(not being a company or firm) which help an Individual to avoid TDS (Tax deducted at Source) in case one does not have to pay income tax at the end of the year. 

Important points related to Form 15G/Form H

• Only persons with income below taxable limits can only make use of this form.
•  As per the provisions, only persons with NIL tax liability only can give these forms. 
•   These forms should be submitted to each and every branch where you hold the deposits. For example, if you hold deposits in 3 different branches of State Bank of India, this declaration shall be given for each branch separately.
•  These forms can be used only for payments in the nature of Interest / dividend  from securities, Interest on fixed deposits, Interest on units of National Saving Schemes of  For other types of payments, these forms cannot be used.

What other documents are required along with form 15G/H

Copy of the Pan card to be attached (If it is not updated in bank records) PAN details are compulsory for TDS eligible payments as per this wef 01.04.2010(u/s 206AA), in absence of PAN details, Form 15G/H and other exemptions certificates will be invalid even if submitted and Penal TDS will be applicable. Section 206AA is related to "every person who receives income on which TDS is deductible shall furnish his Pan, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO depositis"


Forms (Revised)

Form 15G 

Form 15 H

When to Submit this form

This form shall be submitted every Financial year at the beginning of the Financial year.

Who can Submit Form 15G/15H 

Form 15G shall be given by persons below 60 years of age.
Form 15H shall be given by persons above 60 years of age. (Senior Citizens)


“Person” means Individual (or) a person (not being a company or a firm). Hence even HUFs and Association of Persons can also make use of these forms.

Income exemption limits have been revised as per the latest finance Bill, 2012 as follows

 

How to avoid tax deducted at source on Fixed Deposits

 If the investor submits Form 15G stating that he has no taxable income, then the bank would not deduct any TDS from the interest earned. For senior citizens, the requisite form is 15H to avoid TDS.

When will you have to pay tax on Fixed Deposits?

 If the interest earned under FD exceeds Rs 10,000 in a financial year, then it would be eligible for tax deduction at source (TDS) at 10 per cent plus 3 per cent education cess i.e total 10.3 per cent of the interest earned.

How to receive tax deductions if you invest in Fixed Deposits?

The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income. However interest received on the FD is taxable. The interest earned under the FD is taxable under the head 'Income from other Sources'.

The investment in a recurring deposit is not considered for deduction u/s 80C
There is no income tax benefit available for a recurring deposit, also note that sec 80C benefit is not available even if the recurring deposit is for a period of 5 years or more.

How to fill form 15G or 15H (FOR FY 2013-14)

Also refer

While filling the Form 15H - asking Area code and Ao code, How to get that??

How to get Mutual Fund Capital Gains Statement

Redeeming mutual funds is easy, but maintaining account statement of capital gain and loss is difficult for many investors, they keep calling advisor if he can help them to get that capital gain statement or if not at least can provide them account statement to help them to prepare Capital Gain and Loss Statement for Mutual Fund Units. 

But surprisingly many investors and even distributors don't know this option which is available on line and which actually help them to get quick access to Mutual fund Capital Gain/loss statement.  

In order to get mutual fund capital gains statement for all you investment in mutual funds you need to register your email address in mutual fund records.

 

 You can request a statement of "Investment Performance", which will contain actual withdrawals made by you in your fund account, realised gains/losses on a FIFO basis and segregated as long term and short term. The statement will also contain a summary of the dividends paid out in respect of the account. 

The statements will be provided for the previous and current financial year. This is an email-only service; if you have not provided an email address in your application form, this request cannot be responded to.

 

Now how to get Mutual fund capital gains statement

1.  visit Camsonline.com  https://www.camsonline.com   OR

https://www.camsonline.com/InvestorServices/COL_ISGainStmt.aspx

https://www.camsonline.com/InvestorServices/COL_ISTransactionDetails.aspx

https://www.camsonline.com/InvestorServices/COL_ISGainStmt.aspx

2.  Click on on line service for Investors (which you observe top of page 2nd from left)

3. Click on Mail Back Services

 http://camsonline.com/InvestorServices/COL_ISMailBackServices.aspx

4. New Window opens

5. In that click on  Consolidated Realised Gains Statement

 

6.  Enter the Email address registered in the folio

7. Select the delivery option

8. Enter password of your choice to open the attachment (which you will receive in your registered email address)

 

Forthcoming Dividends in Equity and Hybrid Funds (April 16, 2012 to April 20, 2012)

Forthcoming Dividends in Equity and Hybrid Funds (April 16, 2012 to April 20, 2012)

 

How to access PPF account online...

Online PPF facility is currently available in SBI, ICICI Bank and IDBI Bank.

In order to get PPF online access:

1. You must have Saving Bank Account and PPF Account from same Bank.

2. Apply for netbanking access for saving bank account.

3. Request Bank to link your Savings Bank Account to your PPF Account.

In SBI Bank you can link your SBI PPF account with your Saving Bank account and can transfer funds and check your PPF balance online. 

 What is required to get online access to PPF

Login id and password for net banking and then link you accounts and get the access.

Also refer:

 SBI PPF Online Transfer

But some banks permit PPF online transfers . For example, if you have your PPF account with SBI and your salary/savings account with ICICI Bank, you can log into net banking and add the SBI PPF account as a payee for transfer from your ICICI account. This option is for fund transfer from your bank to your ppf account,but you can't able to check your PPF Account Status)

ICICI very recently started PPF online Facility. (Here you can check PPF Status + Transfer funds to your PPF Account.

How to apply online PPF account in ICICI Bank:

If you have access to your ICICI NetBanking, in that click on PPF Account online

Step 1: Fill in the details required for opening a PPF Account

Step 2: Take a print out of the pre-printed form, affix your photograph and sign on the form

Step 3: Submit the application form and the nomination form to any one of our branches

The PPF account will be opened only in a designated branch of ICICI Bank authorised by the ministry of finance. To view the list of these branches please click here . Please mention the name of the branch where your wish to open your PPF account on the application form

If you have PPF account in any other bank or Post office, you can request for transfer of PPF account and  transfer account to SBI or ICICI.

But to get  PPF account on line you must have bank account linked + net banking facility.

How to link your SBI PPF to your ICICI Bank Account

This facility is not yet started, so you can't link your SBI PPF Account with your ICICI Bank account and check your PPF Status.

But still if you want to link Your PPF Account  then you need to transfer your SBI PPF Account to Your ICICI PPF Account and then link your icici bank and PPF account to get the online Access+fund transfer option.

But if you want only Fund Transfer option and don't want to Transfer your PPF Account then:
  
You need to Link your SBI PPF as Payee in your ICICI Bank for your yearly contribution in PPF in "Fund Transfer to Non ICICI Bank across India."
 


How to use Fund Transfer option in your ICICI Bank Account:

1. Login to your ICICI net banking account
2. In that click on "Fund Transfer"
3. In Fund Transfer select - "Fund Transfer to Non ICICI Bank across India"
4. Register SBI PPF Account as Payee
5. Add Payee Details and then click confirm
6. If your mobile number is registered, in such case, six digit URL will be sent to your registered mobile Number
7. Enter URN received on your mobile, and click on "Confirm Payee"

8. Once your Payee details are confirmed, you can able to transfer funds to your registered and confirmed Payee that is SBI PPF.

9. Then for Transfer of funds - Select SBI PPF as Payee, enter the amount you want to transfer along with transaction remarks and click continue

10. Verify the details and now its time to enter Transaction password to confirm your transaction for transfer.

11. Last page will be adding ATM/Debit card details as prompted, click OK to confirm. And after that within few hours amount will be transfered to your SBI PPF Account.

You can also refer this demo for fund Transfer

http://www.icicibank.com/online-demo/fundstransfer.html

 

 

For Transfer of PPF account refer this Link

How to transfer PPF account from one branch to the other of ( bank or post office)?