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| Tax Reckoner 2017-18 |
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| Snapshot of Tax rates specific to Mutual Funds |
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| The rates are applicable for the financial year 2015-16 and are subject to enactment of the Finance (No.2) Bill, 2015. |
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Effective : 1st. April 2015. |
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| 1. |
Income Tax Rates
For Individuals, Hindu Undivided Family, Association of Persons, Body of
Individuals and Artificial juridical persons |
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| Total Income |
Tax Rates |
| Up to Rs. 2,50,000 (a)(b)(d) |
NIL |
| Rs. 2,50,001 to Rs. 5,00,000(d) |
10% |
| Rs. 5,00,001 to Rs. 10,00,000(d) |
20% |
| Rs. 10,00,001 and above(c)(d) |
30% |
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(a) In the case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 3,00,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs. 5,00,000.
(c) Surcharge @ 12% is applicable on income exceeding Rs. 1 crore; Marginal relief for such person is available.
(d) Education cess is applicable @ 3% on income tax plus surcharge. |
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| 2. |
Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under. |
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| Transaction |
Rates |
Payable By |
| Purchase/ Sale of equity shares |
0.1% |
Purchaser/Seller |
| Purchase of units of equity oriented mutual fund (delivery based) |
Nil |
Purchaser |
| Sale of , units of equity oriented mutual fund (delivery based) |
0.001% |
Seller |
| Sale of equity shares, units of equity oriented mutual fund (non-delivery based) |
0.025% |
Seller |
| Sale of a option in securities |
0.017% |
Seller |
| Sale of an option in securities, where option is exercised |
0.125% |
Purchaser |
| Sale of a futures in securities |
0.010% |
Seller |
| Sale of unit of an equity oriented fund to the Mutual Fund |
0.001% |
Seller |
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| 3. |
Special rates for non-residents
(1) The following incomes in the case of non-resident are taxed at special rates on gross basis: |
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| Transation |
Rate (a) |
| Dividend (b) |
20% |
| Interest received on loans given in foreign currency to Indian concern or Government of India |
20% |
| Income received in respect of units purchased in foreign currency of specifies Mutual Funds / UTI |
20% |
| Royalty or fees for technical services |
10% |
| Interest income from a notified infrastructure debt fund |
5% |
| Interest on FCCB, FCEB / Dividend on GDRs(b) |
10% |
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(a) These rates will further increase by applicable surcharge and education cess.
(b) Other than dividends on which DDT has been paid.
(c) In case the non-resident has a Permanent Establishment (PE) in India and the royalty/ fees for technical services paid is effectively connected with such, the same could be taxed at 40% (plus applicable surcharge and education cess) on net basis. |
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(2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus applicable surcharge and education cess. |
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| 4. |
Capital Gains |
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| Transaction |
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 |
| Sale transaction other than mentioned above: |
| Individuals (resident and non-residents) |
Progressive slab rates |
20% / 10% |
| Partnership (resident and non-residents) |
30% |
| Resident Companies |
30% |
| Overseas financial organisations specified in section 115AB |
40% (corporate) 30% (non corporate) |
10% |
| FIIs |
30% |
10% |
| Other Foreign companies |
40% |
20% / 10% |
| Local authority |
30% |
20% / 10% |
| Co-operative society rates |
Progressive slab |
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(a) These rates will further increase by applicable surcharge & education cess.
(b) Indexation benefit as applicable |
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Personal Tax Scenarios (Amount in Rupees) |
| Individual |
Income Level |
| 5,00,000 |
5,000,000 |
11,000,000 |
| Tax in FY 2014-15 |
25,750 |
1,364,750 |
3,540,625 |
| Tax in FY 2015-16 |
25,750 |
1,364,750 |
3,605,000 |
| Effective Tax Savings |
NA |
NA |
NA |
| Effective Tax Savings |
NA |
NA |
NA |
| Additional Tax Burden |
NA |
NA |
NA |
| Additional Tax Burden |
NA |
NA |
64,375 |
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| Resident senior citizen (age of 60 years but below 80 years) |
Income Level |
| 5,00,000 |
50,00,000 |
11,000,000 |
| Tax in FY 2014-15 |
20,600 |
1,359,600 |
3,534,960 |
| Tax in FY 2015-16 |
20,600 |
1,359,600 |
3,599,232 |
| Effective Tax Savings |
NA |
NA |
NA |
| Effective Tax Savings |
NA |
NA |
NA |
| Additional Tax Burden |
NA |
NA |
64,272 |
| Additional Tax Burden |
NA |
NA |
1.82% |
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| Resident very senior citizen at the age of 80 years and above |
Income Level |
| 5,00,000 |
5,000,000 |
11,000,000 |
| Tax in FY 2014-15 |
Nil |
1,339,000 |
3,512,300 |
| Tax in FY 2015-16 |
Nil |
1,339,000 |
3,576,160 |
| Effective Tax Savings |
NA |
NA |
NA |
| Effective Tax Savings |
NA |
NA |
NA |
| Additional Tax Burden |
NA |
NA |
63,860 |
| Additional Tax Burden |
NA |
NA |
1.82% |
| Marginal relief as applicable would be available |
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| Tax Implications on Dividend received by Unit holders |
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Individual HUF |
Domestic Company |
NRI |
| Dividend |
| Equity oriented Schemes |
Nil |
Nil |
Nil |
| Debt oriented Schemes |
Nil |
Nil |
Nil |
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| Tax on Distributed income (payable by the scheme) rates** |
| Equity oriented Schemes* |
Nil |
Nil |
Nil |
| money market and Liquid schemes |
25% + 12% Surcharge + 3% Cess=28.84 % |
30% + 12% Surcharge + 3% Cess=34.608 % |
25% + 12% Surcharge + 3% Cess=28.84 % |
| Debt schemes (other than infrastructure debt fund) |
25% + 12% Surcharge + 3% Cess=28.84 % |
30% + 12% Surcharge + 3% Cess=33.608 % |
25% + 12% Surcharge + 3% Cess=28.84 % |
| Infrastructure Debt Fund |
25% + 12% Surcharge + 3% Cess=28.84 % |
30% + 12% Surcharge + 3% Cess=33.608 % |
5% + 12% Surcharge + 3% Cess=5.768 % |
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| * Security transaction tax (STT) will be deducted on equity funds at the time of redemption / switch to the other schemes / sale of units. |
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| Capital Gain Taxation |
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Individual / HUF $ |
Domestic Company @ |
NRI $ / # |
Equity Oriented Schemes
Long Term Capital Gains (units held for more than 12 months) :: Short Term Capital Gains (units held for 12 months or less) |
| Long Term capital gains |
Nil |
Nil |
Nil |
| Short term capital gains |
15% |
15% |
15% |
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Other Than Equity Oriented Schemes
Long Term Capital Gains(units held for more than 36 months) :: Short Term Capital Gains (units held for 36 months or less ) |
| Long Term capital gains |
20% |
20% |
Listed - 20%
Unlisted - 10% |
| Short term capital gains |
30% |
30% |
30%^ |
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| Tax Deducted at Source (Applicable only to NRI Investors) |
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Short term capital gains |
Long term capital gains |
| Equity oriented Schemes |
15% |
Nil |
| Other than equity oriented Schemes |
30% ^ |
Listed - 20%
Unlisted - 10%* |
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$ - Surcharge at 12% to be levied in case of individual/ HUF unit holders where their income exceeds Rs 1 crore.
@ - Surcharge at 7 to be levied for domestic corporate unit holders where income exceeds Rs 1 crore but less than Rs. 10 crores and at 12%, where income exceeds Rs. 10 crores.
# - Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only.
& After providing indexation.
* Without indexation
^ Assuming the investor falls into highest tax bracket.
Education Cess @3% will continue to apply on tax plus surcharge
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| The Finance Bill, 2015 proposes to provide tax exemption to unit holders upon consolidation or merger of mutual fund schemes, provided consolidation is of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund. |
Dividend Stripping: The loss due to sale of units in the schemes (where dividend is tax free) will not be available for set off to the extent of the tax free dividend declared; if units are:(A)
bought within three months prior to the record date fixed for dividend declaration; and (B) sold within nine months after the record date fixed for dividend declaration
Bonus Stripping: The loss due to sale of original units in the schemes, where bonus units are issued, will not be available for set off; if original units are: (A) bought within three
months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss
so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units. |
| Mutual Fund investments are subject to market risks, read all scheme related documents carefully. |
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| Disclaimer: The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordancewith the prevailing tax laws as certified by the mutual funds tax consultant. |
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