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Tax Rules for Mutual Fund Investors
as per Finance Bill 2011 – SNAPSHOT
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Individual/ HUF |
Domestic Company |
NRI |
Capital Gain Taxation
Long Term (LTCG)
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Equity schemes
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Nil
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Nil
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Nil
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Debt schemes
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10% without indexation or 20% with indexation whichever is lower + 3% Cess
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10% without indexation or 20% with indexation whichever is lower + 5% surcharge + 3% Cess
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10% without indexation or 20% with indexation whichever is lower + 3% Cess
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Without Indexation
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10.30%
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10.815%
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10.30%
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With Indexation
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20.60%
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21.63%
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20.60%
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Short Term (STCG)
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Equity schemes
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15%+3% cess
= 15.45%
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15%+5%surcharge*+
3% Cess =16.22%
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15% + 3%Cess
=15.45%
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| Debt schemes |
As per Slab rates** |
30%+5% surcharge * + 3% Cess |
As per Slab rates** |
Dividend Distribution Tax (DDT)
| Equity schemes |
Nil |
Nil |
Nil |
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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% |
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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.
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| PERSONAL INCOME TAX STRUCTURE |
| Total Income |
TaxRates |
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Up to INR 180,000 (a)(b)
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NIL
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INR 180,001 to INR 500,000
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10%
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INR 500,001 to INR 800,000
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20%
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INR 800,001 and above (c)
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30%
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- In the case of a resident woman below the age of 60 years, the basic exemption limit is Rs 190,000.
- 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.
- In the case of a resident individual of the age of 80 years or more, the basic exemption limit is 5,00,000.
- 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.
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WEALTH TAX & GIFT TAX FOR MF UNITS
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Wealth Tax
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MF units are exempt
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Gift Tax
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MF units are exempt
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Income Tax units provisions on clubbing for Gift of Units
Dividend Income
ST/LT Capital Gain/Loss
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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
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