New HDFC Mutual Fund Transaction Slip for Purchase, Switch and Redemption

http://www.hdfcfund.com/CMT/UPLOAD/ARTICLEATTACHMENTS/New_Transaction_Slip-7.6-color_240613.pdf

Merger of Reliance Natural Resources Fund into Reliance Vision Fund effective from September 7, 2013

As per the Addendum No 38 released by RMF on 31st Jul 2013, the units held in Reliance Natural Resources Fund (RNRF) have been merged into Reliance Vision Fund (RVF) with effect from September 7, 2013 based on the prevailing NAV of RVF as on the previous day i.e. September 6, 2013 equal to the value of the units held in RNRF.


http://reliancemutual.com/UPLOAD/ARTICLEATTACHMENTS/NoticeNo38RNRFRVF.pdf

Also future transactions related to Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) / Systematic Withdrawal Plan (SWP) or any other special products registered by you in Reliance Natural Resources Fund will be processed in Reliance Vision Fund on their respective due dates.

 Merger of Reliance Infrastructure Fund  into Reliance Diversified Power Sector Fund effective from September 7, 2013

 

As per the Addendum No 40 released by RMF on 31st Jul 2013, the units held in Reliance Infrastructure Fund (RIF) have been merged into Reliance Diversified Power Sector Fund (RDPSF) with effect from September 7, 2013 based on the prevailing NAV of RDPSF as on the previous day i.e. September 6, 2013 equal to the value of the units held in RIF. 

 

http://reliancemutual.com/UPLOAD/ARTICLEATTACHMENTS/MergerRationaleInfra%20Power1.pdf

http://reliancemutual.com/UPLOAD/ARTICLEATTACHMENTS/Addendum%2040%20-%20RIF%20into%20RDPSF.pdf

Tax On Debt Mutual Funds In India.....

 

 

 

Short term capital gains on Debt funds

 

Non equity Funds (which holds less than 65% of its expousre in equity)Short term means period of holding is less than a year.

Short Term Capital gains tax is deducted according to individual investor's income tax slab.

Example: Suppose you are getting Rs.25000 gain by selling debt fund within a year and if your annual salary is Rs.5,00,000, then your taxable income will be Rs 5,25,000.

Long Term Capital Gains
Long term capital gains means units are held for more than a year, so tax will be 10% on gains without indexations  or 20% on gains with indexation plus applicable surcharge and education cess.

 

Now how we can calculate long term gains gain with indexation
Example: Indexation helps you to offset your gain with the effect of inflation.

Government will notify the Cost of inflation Index every year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table Source: Tax Point India

 

 

In indexation, the investment cost is raised to inflation cost for the period the investment is held. This is done by using a cost inflation index number released by the central tax authorities every year.

Suppose you have invested 2 Lakh in a debt fund in April 2012 and is selling in May 2013 for 2,21,000

 

Your original investment = 2, 00,000

Your Long Term Capital gain is 21,000 (sale price - cost price)

 

Indexed cost:  2, 00,000 x 939/852 = 220422.535

 

Capital Gain after indexation = 2, 21,000 – 220422.535 = 577.465 (sale price- indexed cost)

 

So, in this case, you have to pay 20% tax on the gain of 577.465/- only and not on the gain of 21,000!  Your tax liability is only 115/-. This is the benefit of indexation.

 

If you don’t want to apply indexation, you have to pay 10% tax on the gain of 21,000. Then the tax liability will be 2100/-.

 

 

How does debt mutual funds taxation differ for NRI investors?

If you are an NRI and you invest in an  non equity mutual fund and redeem it, tax will be deducted at source. This is only for NRIs, not for resident individual investors.

 

Short Term Capital Gains
TDS on STCG is applicable at 30% for debt mutual funds.

Long Term Capital Gains

 TDS on LTCG will be applicable at 20%.

 

 

Securities Transaction Tax (STT) paid on Mutual Fund Units in India - FY 2013-14

Securities Transaction Tax

Equity Oriented Fund
Sale of a unit of an equity-oriented mutual fund	0.001%
Purchase of a unit of an equity-oriented mutual fund where the transaction is entered into a recognized stock exchange and the contract for sale is settled by the actual delivery	NIL
Sale of a unit of an equity-oriented mutual fund the where transaction is entered into a recognized stock exchange and the contract for sale is settled by the actual delivery	0.001%
Other than Equity-oriented Fund – Exempt from Securities Transaction Tax
Mutual Funds will also pay securities transaction tax wherever applicable on the securities bought/sold.

Securities Transaction Tax has been reduced on equity schemes and exchange traded funds to 0.001 per cent for the financial year 2013-14 from June 1, 2013.

There are three areas where the STT would come into play.

1. Buying Mutual fund units from stock exchange - units going into individual's demat account

Earlier it was 0.1% now this has been abolished (w.e.f June 1, 2013) 

2. Selling Mutual Fund Units on the stock exchanges

Earlier it was 0.1% now current rate is 0.001% (w.e.f June 1, 2013)

3. Selling Mutual Fund Units directly to fund house.

 Earlier it was 0.25% now current rate is 0.001% (w.e.f June 1, 2013). This means on a transaction of Rs 1 lakh the tax will be just Re 1. 

Conversion of Sundaram Thematic Entertainment Opportunities Fund & Sundaram Thematic Financial Services Opportunities Fund into Sector Funds

Conversion of Sundaram Thematic Entertainment Opportunities Fund (Letter to Unit Holders)

Conversion of Sundaram Thematic Financial Services Opportunities Fund (Letter to Unit Holders)