·        General Tax Rules

·        Tax Rates for Mutual Fund

·        Tax Rates for Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Tax Rules:

 

 

 

Tax Slab

2010-11

 

 

 

 

Income Slabs (Rs.)

From

To

Tax Rates (%)

 

 

 

 

Males

 

 

 

 

_

160,000

Nil

 

160,001

500,000

10

 

500,001

800,000

20

 

800,001

_

30

Females

 

 

 

 

_

190,000

Nil

 

190,001

500,000

10

 

500,001

800,000

20

 

800,001

_

30

Senior Citizens

 

 

 

 

_

240,000

Nil

 

240,001

500,000

10

 

500,001

800,000

20

 

800,001

_

30

 

 

       * Surcharge is not applicable.

            * Education Cess is applicable @3% on income-tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Rates for Mutual Fund:

 

Tax Implication on Dividend

 

 

Individual/ HUF

Corporates

NRI*

             Dividend

Equity schemes

Tax free

Tax free

Tax free

Debt schemes

Tax free

Tax free

Tax free

 

Dividend Distribution Tax (Payable by the scheme

Equity schemes **

Nil

Nil

Nil

Debt schemes

12.5% + 10% Surcharge + 3% Cess

20% + 10% Surcharge + 3% Cess

12.5% + 10% Surcharge + 3% Cess

= 14.163%

= 22.660%

= 14.163%

Money market and Liquid schemes

25% + 10% Surcharge + 3% Cess

25% + 10% Surcharge + 3% Cess

25% + 10% Surcharge + 3% Cess

= 28.325%

= 28.325%

= 28.325%

 

Capital Gain Taxation

 

Long Term Capital Gains (Units held for more than 12 months)

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 + 10% Surcharge + 3% Cess

10% without indexation or 20% with indexation whichever is lower + 3% Cess

Without indexation

= 10.300%

= 11.330%

= 10.300%

With indexation

= 20.600%

= 22.660%

= 20.600%

 

Short Term Capital Gains (Units held for 12 months or less)

Equity schemes **

15% + 3% Cess

15% +10% Surcharge + 3% Cess

15% + 3% Cess

= 15.450%

= 16.995%

= 15.450%

Debt schemes

30% + 3% Cess^

30% +10% Surcharge + 3% Cess

30% + 3% Cess^

= 30.900%

= 33.990%

= 30.900%

 

*The short term/long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only

** STT @ 0.25% will be deducted on equity funds at the time of redemption and switch to the other schemes

Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought / sold

^Assuming the investor falls into the highest tax bracket

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Rates for Equity:

 

 

Capital Gains

 

Particulars

Short-term

capital gains

tax rates (a)

Long-term

capital gains

tax rates (a)

Sale transactions of equity shares / unit of an equity oriented fund which attract STT

15%

Nil