Tax Implications for Mutual Funds Investor
|
Capital Gains |
Capital Gains |
Dividend Income |
Dividend Distribution Tax |
|
Equity Schemes |
Other Schemes |
|
Equity Scheme |
Liquid Scheme |
Other Scheme |
|
Short Term |
Long Term |
TDS |
Short Term |
Long Term |
TDS |
All Schemes |
|
|
|
| Resident Individual HUFs |
15% |
Nil |
Nil |
As Per Slab |
10% ( 20% with Index ation) |
Nil |
Tax Free |
Nil |
58.325% ( 25% + 10% sur charge + 3% Edu cation Cess) |
14.1625% ( 12.5% + 10% sur charge + 3% Edu cation Cess) |
| Partnership Firms |
15% |
Nil |
Nil |
30% |
10% ( 20% with Indexation) |
Nil |
Tax Free |
Nil |
28.325% ( 25% + 10% surcharge + 3% Education Cess) |
22.66% ( 25% + 10% surcharge + 3% Education Cess) |
| AOP/BOI |
15% |
Nil |
Nil |
As Per Slab |
10% ( 20% with Indexation) |
Nil |
Tax Free |
Nil |
28.325% ( 25% + 10% surcharge + 3% Education Cess) |
22.66% ( 25% + 10% surcharge + 3% Education Cess) |
| Domestic Companies |
15% |
Nil |
Nil |
30% |
10% ( 20% with Indexation) |
Nil |
Tax Free |
Nil |
28.325% ( 25% + 10% surcharge + 3% Education Cess) |
22.66% ( 25% + 10% surcharge + 3% Education Cess) |
| NRIs |
15% |
Nil |
STCG - 15.45% (15% + 3% education cess) LTCG-Nil |
As Per Slab |
10% ( 20% with Indexation) |
STCG - 30% LTCG - 20% (After Providing for Indexation ) |
Tax Free |
Nil |
28.325% ( 25% + 10% surcharge + 3% Education Cess) |
14.1625% ( 25% + 10% surcharge + 3% Education Cess) |
Surcharge
- For Individuals,HUF,AOP/BOI:10% of surcharge on tax payable,if total income exceeds 10Lacs
- For Resident Corporate Unit holders:10% of surcharge on tax payable,if total income exceeds 1Crore
- For Partnership Firms:10% of surcharge on tax payable,if total income exceeds 1Crore
Education Cess
- Education cess is leived at the rate of 3% calculated on tax payable plus surcharge
As per provosions of Section 94(7) of the Income Tax Act, 1961,loss arriving on transfer of units,which are acuired within a peroid of three months prior to the record date (Date fixed by the Fund for purposes of entitlement of the unit holder to recieve the income from units)and sold within a period of nine months after the record date,shall not be allowed to the extent of income distributed by fund in respect of such units.
As per the provisions of sections 94(8) of the Income Tax Act ,1961,where any units ("Original units") are acuired within a period of three months prior to the record date (date fixed by the Fund for the purposes of entitlement ofthe unit holder to recieve bonus units)and any bonus units are alotted (free of cost) based on the holding of the original units within a perod of nine months after the record date,shall be ignored in the computation of the unit holders taxable income.Such loss will however,be deemed to be the cost of aquisition of the bonus units.
Wealth Tax for Mutual Fund( MF ) units
| Wealth Tax |
MF Units are exempt |
|
| Income Tax Provisions on Clubbing,for Gifting of units |
Dividend Income |
As Dividend is Tax free in hands of unit holder,
No tax is applicable on either Donee or Donor. |
|
Short Term/Long Term Capital Gain/Loss |
if Transferee or Donee is:
- Spouse,Son's Wife or Minor son:Gain/Loss clubbed with that of the Donor units
- Other Independant Donee:Gain/Loss is treated as Donee's gain/loss and not clubbed with that of donor.
|
Securities Transaction Tax ( STT )
| Equity Schemes |
Other Schemes |
| 0.25% of Redemption value.The Mutual Fund will also pay transaction tax whereever applicable,on the securities baught/sold |
No STT on Redemption Value.The mutual Fund is exempt from paying transaction tax wherever applicable,on the securities(other than equities,etc)bought/sold |
