About Taxation

Tax Rules for Mutual Fund Investors
as per Finance Bill 2015 – SNAPSHOT

 

                                                                                                              Individual/ HUF                                        Domestic Company                      NRI                                        

Capital Gain Taxation

Long Term (LTCG)

Equity schemes


10% on Long Term capital Gain ( More than 1Lac)


10% on Long Term Capital Gain (More than 1 Lac)


10% on Long Term Capital Gain (More than 1 Lac)


 

Other than Equity schemes


10% or

20% with indexation 

10% or

20% with indexation


Listed-20%

Unlisted-10%


   

 


     

 


Short Term (STCG)

Equity schemes     

                                           

  15%                  

15%#

15%

Debt schemes As per Slab rates**  At marginal Tax Rate applicable to the assessee As per Slab rates**

  Dividend Distribution Tax (DDT)

Equity schemes                                                10%                        
10%                        
 10%                         

Other than Equity schemes
DDT rates

28.84% 34.61%  28.84%+
Rates* of TDS ( for NRI Investors) Short Term Capital Gain Long Term Capital Gain$  
Equity Schemes  15%*  10% on More than 1 Lac LTCG
 
Other than Equity Schemes  30%  20%  

Surcharge at the rate of 12% is applicable for domestic companies having net income exceeding INR 1 crore.

$ After providing for  indexation

# Surcharge at 7% to be levid for domestic corporate unit holders where income exceeds Rs 1 Crore but less than 10 Crore & at 12% where income exceeds Rs 10 Crores


 
 
PERSONAL INCOME TAX STRUCTURE 
Total Income TaxRates

Up to INR 2,50,000 (a)(b)

NIL

INR 2,50,001 to INR 5,00,000

5%

INR 5,00,001 to INR 10,00,000

20%

INR 10,00,001 and above (c)

30%

  1. In the case of a resident individual of the age of 60 years or above but below 80 Yrs,the basic exemption limit is Rs 3,00,000. in case of resident individual of age of 80 Years or above, the basic exemption limit is Rs 5,00,000.
  2. Surcharge  @12% is applicable on income exceeding Rs 1 Crore
  3. Education cess is applicable at the rate of 3% on income-tax plus surcharge

 

 

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