|
| Tax Benefits |
|
|
|
| Tax rates applicable from 1st April 2007
|
|
|
|
| Nature of Income |
Resident
individuals |
Corporates |
Non-resident |
|
|
|
|
| Capital gains tax rates* |
| Short term |
| Equity schemes |
10% |
10% |
10% |
| Debt schemes |
30% |
30% |
30% for individuals and FIIs / 40% for Foreign company |
| Long term |
| Equity schemes |
Nil |
Nil |
Nil |
| Debt schemes |
10% without indexation or 20% with indexation |
10% without indexation or 20% with indexation |
10% for FIIs / 20% others (Indexation benefit is not available to non-resident) |
| Dividend |
| Equity schemes |
Tax free |
Tax free |
Tax free |
| Debt schemes |
Tax free |
Tax free |
Tax free |
|
|
|
|
*Plus applicable surcharge and education cess
Short capital losses can be set off against short term and long
term capital gains, whereas Long term capital gains can be set off against the
long term capital gains. Remaining unutilized losses can be carried forward for
8 years from the year in which such losses were incurred.
|
|
| Withholding tax rates |
|
| In case of Non-resident investors (other than FIIs),
the short term / long term capital gain tax will be deducted at following rates
plus applicable surcharge and education cess, at the time of redemption of
units. |
|
|
| Assessee Status |
Short Term
Withholding tax rate |
Long Term
Withholding tax rate |
| Non-residents |
| - Company
|
40% |
20% |
| - Other than companies |
30% |
20% |
|
|
|
|
|
Non-resident Unit Holder can avail the benefit of Double
Taxation Avoidance Agreement (DTAA) in force with his country of residence, and
income tax / withholding tax will be applicable at the rate provided in the Act
or at the rate provided in DTAA, whichever is more beneficial to him.
However, in order to obtain the benefit of the lower rate under
the DTAA, the Unit Holder would be required to provide a certificate from his
Income tax officer stating the eligibility of the investor to claim such
benefit.
Securities Transaction Tax @ 0.25% will be deducted from equity
schemes at the time of redemption or switch to the other schemes.
|
|
| Surcharge and Education cess |
|
|
| Status |
Rate of surcharge |
| Resident individual / companies |
10% |
| Non resident |
| - Companies |
2.5% |
|
- Other than Companies |
10% |
|
|
|
|
An Education Cess of 2% and Higher Secondary
Education Cess of 1% is levied on tax plus surcharge payable by all assesses.
|
|
Dividend Distribution Tax
As per section 115R of the Act, Mutual fund is liable to pay
Dividend Distribution tax at following rates on the income distributions:
|
| Type of schemes |
DDT rate applicable |
| Equity oriented schemes* |
Exempt |
| Money market / liquid schemes |
28.325%** |
|
|
* Equity oriented schemes means schemes where 65% or more of the investible
funds are invested in equity shares of domestic companies.
** Above rates are inclusive of Surcharge and Education cess.
|
|
| Disclaimer
|
|
The above information is provided for general information
purposes only and applies to the scheme. In view of the individual nature of
tax benefits, each investor is advised to consult his or her own tax consultant
with respect to the specific tax implications arising out of his or her
participation in the scheme.
Back to top
|
|