Depending on the scheme, investments in mutual funds are subject to taxes like Capital Gains tax, Dividend tax and other charges. The table below gives you the applicable taxes. It is for information purposes only and actual figures may vary from assessee to assessee.
Dividend and Capital gain Tax from 1 April 2008
| |
Individuals |
Corporates |
NRI * |
| Dividend Equity schemes |
Tax free |
Tax free |
Tax free |
| Dividend distribution tax Equity schemes ** |
Nil |
Nil |
Nil |
| Debt schemes |
12.5%
+ 10% surcharge
+ 3% cess
14.163%
|
20%
+ 10% surcharge
+ 3% cess
22.66%
|
12.5%
+ 10% surcharge
+ 3% cess
14.163%
|
| Money market and Liquid schemes |
25%
+10% surcharg
+ 3% cess
28.325%
|
25%
+10% surcharge
+ 3% cess
28.325%
|
25%
+10% surcharge
+3% cess
28.325%
|
Long term Capital gains Tax
| |
Individuals |
Corporates |
NRI * |
| Equity schemes ** |
Nil |
Nil |
Nil |
| Debt schemes |
10% without indexation or 20% with indexation whichever is lower +10% surcharge
+ 3% cess |
10% without indexation or 20% with indexation whichever is lower +10% surcharge
+ 3% cess |
10% without indexation or 20% with indexation whichever is lower
+10% surcharge
+ 3% cess |
| Without indexation |
11.33% |
11.33% |
11.33% |
| With indexation |
22.66% |
22.66% |
22.66% |
Short term Capital gains
| |
Individuals |
Corporates |
NRI * |
| Equity schemes ** |
15% Flat
+10% surcharge
+ 3% cess
16.995% |
15% Flat
+10% surcharge
+ 3% cess
16.995% |
15% Flat
+10% surcharge
+ 3% cess
16.995% |
| Debt schemes |
30%
+10% surcharge
+ 3% cess
33.99%
|
30%
+10% surcharge
+ 3% cess
33.99% |
30%
+10% surcharge
+ 3% cess
33.99% |
** STT @ 0.25% will be deducted on equity funds at the time of redemption and switch to the other schemes.
The short term/long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only
The rates that will be applied by the AMC at the time of redemption would be as follows
| |
Short term Capital Gain Tax less than 1 year |
Long term Capital Gain Tax less than 1 year |
| Equity |
XXXXX% |
NIL |
| Debt |
XXXXX%
|
XXXX% |
Disclaimer
"The information provided here is sourced from third parties and while the content is believed to be correct, the AMC, the Trustees, the Fund nor any of their affiliates or representatives do not assume any responsibility for the accuracy of such information. Investors are requested to kindly consult their tax advisors for ascertaining tax liability."
