Income Tax Rates for 2012-13 (Tax Reckoner 2012-13)

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.