*Plus applicable surcharge and education cess as applicable

** Based on judicial precedents, the non-resident may opt to apply the concessional rate of 10% without indexation benefit

Short term capital losses can be set off against short term and long term capital gains, whereas Long term capital – losses 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.

In case of Non-resident investors (other than FIIs), the short term / long term capital gain tax will be deducted at the respective capital gains tax rates mentioned against each scheme in above table plus applicable surcharge and education cess, at the time of redemption of units.

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 tax residency certificate from his Income tax officer stating the eligibility of the investor to claim such benefit.

With respect to units of equity scheme, securities Transaction Tax @ 0.25% of redemption value will be collected by the mutual fund at the time of redemption or switch to the other schemes.

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:

* 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.

The above information is provided for general information purposes only. 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.

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