About Taxation

Tax Rules for Mutual Fund Investors
as per Finance Bill 2011 – SNAPSHOT

 

                                                                                                              Individual/ HUF                                        Domestic Company                      NRI                                        

Capital Gain Taxation

Long Term (LTCG)

Equity schemes


Nil


Nil


Nil


 

Debt 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


10.30%

10.815%

10.30%

 


With Indexation


20.60%

21.63%

20.60%

 


Short Term (STCG)

Equity schemes     

                                           

  15%+3% cess

= 15.45%                      

15%+5%surcharge*+

3% Cess =16.22%

15% + 3%Cess

=15.45%

Debt schemes As per Slab rates**  30%+5% surcharge * + 3% Cess  As per Slab rates**

  Dividend Distribution Tax (DDT)

Equity schemes                                                Nil                            Nil                             Nil                          

Debt schemes
DDT rates (1.04.2011 to 31.05.2011)

13.519% 21.630%  13.519%
DDT rates (1.06.2011 to 31.03.2012) 13.519%  32.445% 13.519%

Money market
DDT rates (1.04.2011 to 31.05.2011)

27.038%  27.038%  27.038% 
DDT rates (1.06.2011 to 31.03.2012) 27.038%  32.445%  27.038% 

* Surcharge at the rate of 5% is applicable for domestic companies having net income exceeding INR 1 crore.


 
 
PERSONAL INCOME TAX STRUCTURE 
Total Income TaxRates

Up to INR 180,000 (a)(b)

NIL

INR 180,001 to INR 500,000

10%

INR 500,001 to INR 800,000

20%

INR 800,001 and above (c)

30%

  1. In the case of a resident woman below the age of 60 years, the basic exemption limit is Rs 190,000.
  2. In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is 250,000.
  3. In the case of a resident individual of the age of 80 years or more, the basic exemption limit is 5,00,000.
  4. Education cess is applicable at the rate of 2% on income-tax and secondary and higher education cess at the rate of 1% on income-tax.

 

 

WEALTH TAX & GIFT TAX FOR MF UNITS 

Wealth Tax

MF units are exempt

Gift Tax

MF units are exempt

Income Tax units provisions on clubbing for Gift of Units

Dividend Income

 


ST/LT Capital Gain/Loss

 

As dividend is tax free in hands of holders, hence no tax applicable on either Donee or Donor

If the transferee or donee is

  • Spouse, Son’s wife or minor son: gain/loss clubbed with that of the donor of units
  • Other independent donee: gain/loss treated as donee’s gain/loss and not clubbed with that of donor
 
Useful links : NSE | BSE | MCX | CDSL | SEBI | NCDEX | AMFI | NSDL All rights are reserved © moneymanageronline.com
REDVision Technologies