The rates are applicable for the financial year 2012-13 and are subject to enactment of the Finance Bill, 2012.
Tax Implications on Dividend received
by Unitholders
|
Individual/
HUF |
Domestic Company |
NRI* |
| Dividend |
| Equity oriented
schemes |
Nil |
Nil |
Nil |
| Debt
oriented schemes |
Nil |
Nil |
Nil |
Tax on distributed income (payable by the scheme)
rates
|
Equity oriented schemes
**
|
Nil
|
Nil
|
Nil
|
Debt schemes
|
12.5% + 5% Surcharge + 3% Cess
|
30% + 5% Surcharge + 3% Cess
|
12.5% +5% Surcharge + 3% Cess
|
= 13.519%
|
= 32.445%
|
= 13.519%
|
Money market and Liquid schemes
|
25% + 5% Surcharge + 3% Cess
|
30% + 5% Surcharge + 3% Cess
|
25% + 5% Surcharge + 3% Cess
|
= 27.038%
|
= 32.445%
|
= 27.038%
|
Capital Gains Taxation
Long Term Capital Gains (units held for more than 12 months)
|
Equity oriented schemes
**
|
Nil
|
Nil
|
Nil
|
Other than equity
oriented schemes
|
10% without indexation or 20% with indexation whichever is lower
+ 3% Cess
|
10% without indexation or 20% with indexation whichever is lower
+ 5% Surcharge# + 3% Cess
|
10% without indexation or 20% with indexation whichever is lower
+ 3% Cess
|
Without indexation
|
= 10.300%
|
= 10.815%
|
= 10.300%
|
With indexation
|
= 20.600%
|
= 21.630%
|
= 20.600%
|
Short Term Capital Gains
(units held for 12 months or less)
|
Equity oriented schemes
**
|
15% + 3% Cess
|
15% + 5% Surcharge# + 3% Cess
|
15% + 3% Cess
|
= 15.450%
|
= 16.223%
|
= 15.450%
|
Other than equity
oriented schemes
|
30%^ + 3% Cess
|
30% +5% Surcharge#
+
3% Cess
|
30%^ + 3% Cess
|
= 30.900%
|
= 32.445%
|
= 30.900%
|
# In case of a domestic company surcharge of @ 5% shall be levied if
the total income exceeds Rs. 1 Crore subject
to marginal relief.
*The shor
t term/long term capital gain tax will be deducted
at the time of redemption of units in case of NRI investors only.
** Securities transaction tax (STT) will be deducted on equity funds at the time
of redemption and switch to the other schemes. Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought / sold
^ Assuming the investor falls into highest
tax bracket.
Tax
Deducted at Source (Applicable only to NRI Investors)
|
|
Short term capital gains
|
Long term capital gains
|
Equity oriented schemes
|
15.450%
|
NIL
|
Other than equity
oriented schemes
|
30.900%
|
20.600%#
|
# after providing for indexation
Dividend Stripping: The loss due to sale of units in the schemes
(where dividend is tax free) will not be available
for setoff to the extent of the tax free dividend declared;
if units are: (A) bought within three months prior to the record date fixed for dividend declaration; and (B) sold within nine months after the record date fixed for dividend declaration.
Bonus Stripping: The loss due to sale of original units in the schemes, where bonus units are issued,
will not be available for set off; if original units are: (A) bought within three
months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units.
1. Income Tax Rates
- For Individuals,
- Hindu Undivided Family,
- Association of Persons,
- Body of Individuals
and
- Artificial juridical persons
Total Income
|
Tax
Rates
|
Up to
Rs. 2,00,000
(a)(b)
|
NIL
|
Rs. 2,00,001
to Rs.
5,00,000
|
10%
|
Rs. 5,00,001
to Rs.
10,00,000
|
20%
|
Rs. 10,00,001
and above
|
30%
|
(a) In the case of a resident individual of the age
of 60 years or above but
below 80 years, the basic exemption limit is Rs.
2,50,000.
(b) In case of a resident individual of age of 80
years or above, the basic
exemption limit is Rs. 5,00,000.
(c) Surcharge is not applicable.
(d) Education cess is applicable @ 3% on income tax.
(e) Marginal relief may be
available.
2. Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.
Transaction
|
Rates
|
Payable By
|
Purchase/ Sale
of equity
shares, units
of
equity oriented
mutual fund
(delivery based)@
|
0.1%
|
Purchaser/
Seller
|
Sale of equity shares, units of equity oriented mutual
fund (non –delivery based)
|
0.025%
|
Seller
|
Sale of
an option
in securities
|
0.017%
|
Seller
|
Sale of an option in securities, where option is exercised
|
0.125%
|
Purchaser
|
Sale of
a futures
in securities
|
0.017%
|
Seller
|
Sale of
unit of
an equity
oriented fund
to the
Mutual Fund
|
0.25%
|
Seller
|
@ effective 1 July 2012
3. Special rates for non-residents
(1) The following incomes in the case of non-resident are taxed at special
Nature
of Income
|
Rate
(a)
|
Dividend
(b)
|
20%
|
Interest received on loans given in foreign currency to Indian concern
or Government of India.
|
20%
|
Income received in respect of units purchased in foreign currency of specifies
Mutual Funds / UTI
|
20%
|
Royalty or fees for technical services
|
For Agreements
entered into:
- After 31 May 1997 but before
1
June 2005
–@ 20%
- After 1 June 2005 – @ 10%
|
Interest
income from
a notified infrastructure
debt fund
|
5%
|
Interest on FCCB, FCEB / Dividend on GDRs(b)
|
10%
|
(a) These rates will further increase by surcharge and education cess.
(b) Other than dividends on which DDT has been paid.
(c) In case the non-resident has a Permanent Establishment (PE) in
India and the royalty/ fees for technical services paid is effectively
connected with such, the same could be taxed at 40% (plus
surcharge and education cess) on net basis.
(2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus surcharge and education cess.
4. Capital Gains
Particulars
|
Short-term capital gains
tax rates (a)
|
Long-term
capital gains tax rates (a)
|
Sale transactions of equity shares / unit of an equity oriented fund which attract
STT
|
15%
|
Nil
|
Sale transaction other than mentioned above:
|
|
|
Individuals (resident and non-residents)
|
Progressive slab rates
|
20% with indexation; 10%
without indexation
(for
units/ zero coupon bonds)
|
Par
tnerships
(resident and
non-resident)
|
30%
|
Resident
Companies
|
30%
|
Overseas financial organisations specified in section 115AB
|
40% (corporate)
30% (non- corporate)
|
10%
|
FIIs
|
30%
|
10%
|
Other Foreign companies
|
40%
|
20% / 10%
|
Local authority
|
30%
|
10% without indexation (for units/ zero coupon bonds)
/ 20% (for others)
|
Co-operative
society rates
|
Progressive
slab
|
Disclaimer : The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone.we will not be liable in any manner for the consequences of such action taken by you.
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