"Dividend and Capital gain taxation in the hands of investors in Mutual Fund Schemes from 1 April 2010 (The Finance Bill, 2010 has received assent from the President on 8 May 2010)"

"Dividend and Capital gain taxation in the hands of investors in Mutual Fund Schemes from 1 April 2010 (The Finance Bill, 2010 has received assent from the President on 8 May 2010)"

For Individuals 

1. Dividend in Equity Scheme ======================Tax Free

2. Dividend in Debt Scheme   ======================Tax Free

Dividend Distribution Tax in Equity Schemes                        ==========           NIL

Dividend Distribution Tax in Money market and liquid funds ========== 25%+7.5%Surcharge+3%cess= 27.68%
Dividend Distribution Tax in other schemes                         ==========12.5%+7.5%Surcharge+3%cess=13.84%


Long Term Capital Gains (units hold more than one year)
Equity Funds                                                         NIL      but 0.25%STT(Security Transaction Tax) will be deducted in case of equity funds
Debt Funds 
Without Indexetion                                                           10.30%
    with Indexetion                                                            20.60%


**10% without indexetion or 20%  with indexetion whichever is lower + 3% cess

FAQ's: NRI Investment in Mutual Funds Scheme

1. Can NRI Investment in Mutual Funds in India? Whether Permission is required from RBI?
Non Resident Indians and Persons of Indian Origin residing abroad (NRIs) / Foreign Institutional Investors (FIIs) have been granted a general permission by Reserve Bank of India Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 for investing in / redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations

Procedure for making Investment in Mutual Funds 
Buying in Mutual Funds

Repatriation basis:Payments by NRIs/FIIs may be made by way of Indian rupee drafts purchased abroad or out of funds held in NRE/FCNR account or by way of cheques drawn on non-resident external accounts payable at par and payable at the cities where the Investor Service Centres are located.

In case of Indian rupee drafts purchased and subscriptions through NRIs/FCNR account, an account debit certificate from the bank issuing the draft confirming the debit should also be enclosed.

Non Repatriation basis:NRIs investing on a non repatriable basis may do so by issuing cheques/demand drafts drawn on Non-Resident Ordinary (NRO) account payable at the cities where the Investor Service Centres are located.


Selling/Redemption of Mutual FundsPayment to NRI/FII Unit holders will be subject to the relevant laws / guidelines of the RBI as are applicable from time to time (subject to deduction of tax at source as applicable).

In the case of NRIs :
1. Credited only to NRSR account of the NRI investor where the payment for purchase of Units redeemed was made out of funds held in NRSR account or
2. Credited, at the NRI investor’s option, to his / her NRO or NRSR account, where the payment for the purchase of the Units redeemed was made out of funds held in NRO account or
3. Remitted abroad or at the NRI investor’s option, credited to his / its NRE / FCNR / NRO / NRSR account, where the Units were purchased on repatriation basis and the payment for the purchase of Units redeemed was made by inward remittance through normal banking channels or out of funds held in NRE / FCNR account.

Dividend in Birla Sun Life New Millenium Fund (An Open ended Growth Scheme)

Dividend in Birla Sun Life New Millenium Fund (An Open ended Growth Scheme)

Dividend amount  Re. 0.85/- per unit Dividend declared on September 9, 2010 (Record Date)

After the payment of dividend, NAV will fall to the extent of the payout and statutory levy, if any. Past performance may or may not be sustained in the future

The increased interest from foreign investors & positive outlook of India’s industries suggest that India’s economy is set for a promising growth.

Dividend in Birla Sun Life Buy India Fund (An Open ended Growth Scheme)

Dividend in Birla Sun Life Buy India Fund (An Open ended Growth Scheme)
Dividend amount  Rs. 1.75/- per unit Dividend declared on September 9, 2010 (Record Date)

After the payment of dividend, NAV will fall to the extent of the payout and statutory levy, if any. Past performance may or may not be sustained in the future

The increased interest from foreign investors & positive outlook of India’s industries suggest that India’s economy is set for a promising growth.

Dividend in DSP Black Rock India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund)

Dividend Announced - DSP BlackRock India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund)

The Trustees of DSP BlackRock Mutual Fund have declared a tax-free dividend as follows:

Scheme                             DSP BlackRock India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) - Regular Plan (Dividend Option)

Dividend per unit               Rs. 1.25/-

Face Value per Unit           Rs. 10/- per Unit

Record date                       Sep 09, 2010

NAV (as on Sep 02, 2010)       Rs. 20.413

The dividend shall be payable only to those Unit Holders whose names appear in the register of Unit Holders of the Regular Plan of DSP BlackRock India TIGER Fund (The Infrastructure Growth and Economic Reforms Fund) - (Dividend Option) as on Sep 09, 2010. Applications for subscription, redemption, switch-ins and switch-outs for the scheme will be accepted on  Sep 09, 2010, subject to them being complete in all respects and received prior to 3.00 p.m.

Distribution of the above Dividend is subject to the availability and adequacy of distributable surplus. Pursuant to payment of Dividend, the NAV of the Regular Plan of the Scheme (Dividend Option) will fall to the extent of payout and statutory levy, if any.