Tax Matters Made Easy – 2009-10…

Ready Mutual Fund Tax Reckoner

Individual/HUF Corporate NRI*
Capital Gains Taxation
Long Term Capital Gains (Investments for more than 12 months)
#
Equity Schemes Nil Nil Nil
Debt Schemes Lower of 10% with indexation Lower of 10% with indexation Lower of 10% with indexation
or 20% without indexation or 20% without indexation or 20% without indexation
+ 3% Cess + 10% Surcharge + 3% Cess + 3% Cess
Without Indexation 10.30% 11.33% 10.30%
With Indexation 20.60% 22.66% 20.60%

Short-Term Capital Gains (Investments for equal to or less than 12 months)

Equity Schemes# 15% + 10% Surcharge
15% + 3% Edu. Cess 15% + 3% Cess
+ 3% Cess
= 15.45% = 16.995% = 15.45%
Debt Schemes 30% + 10% Surcharge
30% + 3% Edu. Cess 30% + 3% Cess
+ 3% Cess
= 30.90% = 33.99% = 30.90%

Tax Structures on Dividends declared

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
= 14.16% = 22.66% = 14.16%
Liquid and Money- 25%+10% Surcharge+3% Cess 25%+10% Surcharge+3% Cess 25%+10% Surcharge+3% Cess
market Schemes = 28.325% = 28.325% = 28.325%
* The short-term and long-term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only
# STT of 0.25% to be applicable at the time of redemption and switch to other schemes

Tax Deducted at Source (TDS) - Applicable to NRI Investors only

Categories Short-term Long-term
Equity 15.45% Nil
Debt 30.90% 20.60% post indexation

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1. Income Tax Rates a. Surcharge and Education cess applicable extra
For Individuals, HUFs and Body of Individuals b. Other than dividends on which DDT has been paid
Total Income Tax Slabsc (2) Tax on non-resident sportsmen or sports associa- tion on
a,b
Up to Rs. 160,000 Nil specified income @ 10% plus applicable sur-charge and
Rs. 160,001 to Rs. 300,000 10% education cess.
Rs. 300,001 to Rs. 500,000 20% 4. Capital Gains
Rs. 500,001 and above 30% STCG1 LTCG2
a. In case of women below 65 years of age, the limit is Rs 190,000. b. Particulars rates rates
Incase of a resident indivudal above 65 years of age, the limit is Rs
Sale of equity shares/unit of an
240,000. c. Education cess is applicable @ 3 per cent on all net tax paid.
equity oriented fund which 15.0% Nil
attracts STT
2. Securities Transaction Tax (STT) Sale transaction other than
STT is levied as per the following transactions mentioned above:
Rates Payable By Individuals (resident & non- Tax Slab 20% with
Purchase/Sale of equity shares, residents) rates indexation
Buyer/
equity oriented Mutual Fund 0.125% Firms including LLP (resident & and 10%
Seller 30.0%
units (Delivery based) non-residents) without
Sale of Equity shares and equity- Resident Companies 30.0% indexation
oriented Mutual Fund units 0.025% Seller Overseas financial institutions 40%
(Non-Delivery based) specified in section 115AB
(Corporate) /
10%
30%(Non-
Sale of an option in Securities 0.017% Seller Corporate)
Sale of an option in Securities, FIIs 30.0% 10%
0.125% Buyer
where option is exercised Other Foreign Institutions 40.0% 20%/10%
Sale of futures in Securities 0.017% Seller 20% with ind-
Local authority 30.0%
Sale of equity oriented Mutual exation and
0.25% Seller Tax Slab 10% without
Fund(MF) units Co-operative society rates
rates indexation
1 Short-term capital gains, 2 Long-term capital gains;
3. Tax rates for Non-Resident Individuals (NRIs)
Surcharge and Education Cess applicable
(1) The following incomes in the case of non-resident are
taxed at special rates on gross basis:
Personal tax Scenarios
Nature of Incomes Ratesa
b Income Level
Dividend 20.0% Individual
5,00,000 1,000,000 1,500,000
Interest received on loans given
Income Tax (Rs.) 55,620 210,120 364,620
in foreign currency to Indian 20.0%
Resident women Income Level
concern or Government of India
below 65 years 5,00,000 1,000,000 1,500,000
Income received in respect of
Income Tax (Rs.) 52,530 207,030 361,530
units purchased in foreign 20%
Resident women Income Level
currency of specified MFs/UTI
below 65 years 5,00,000 1,000,000 1,500,000
@ 20% b/w May 31, 97
Income Tax (Rs.) 47,380 201,880 356,380
Royalty or fees for technical and June 01,05
services @ 10% on or after June For an easy and simple tax calculations, make use of
01, 05 our Income Tax Calculator:
Interest on FCCB, FCEB/Dividend http://www.rupeetalk.com/Calculator/income-tax-calculator.php
10.0%
on GDRsb
Disclaimer:The
Disclaimer: Theinformation
information mentioned
mentioned above
above is forisgeneral
for general information
information purposespurposes
only & it only
does &
notitprovide
does not
anyprovide anyIndividuals
tax advice. tax advice.and
Individuals and other are
other intermediaries
advised
?ntermediaries are advised to consult his/her own tax consultants before taking any final decision on income tax payments. Income tax benefits are
to consult his/her own tax consultants before taking any final decision on income tax payments. Income tax benefits related to mutual fund investments
in accordance
related with the
to mutual prevailing
fund tax laws
investments applicable
are in India.with the prevailing tax laws applicable in India.
in accordance

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