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III-C-71, Nehru Nagar,
Near Holy Child School,
Ghaziabad – 201001 (U.P.)

Rajesh Kumar Khattar
LandLine Number: 91 – 120 - 2796367
Mob: 9810232830
Email: info@niveshmantra.in
contactniveshmantra@gmail.com

Tax Reckoner

Tax Reckoner 2013-14
Snapshot of Tax rates specific to Mutual Funds
These rates are subject to enactment of the Finance Bill 2013. The rates are for the Financial Year 2013-14.

1. Income Tax Rates

For Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals

Total Income

Tax Rates

Up to Rs.200,000 (a)(b)

NIL

Rs. 200,001 to Rs. 500,000(e)

10%

Rs. 500,001 to Rs. 1,000,000

20%

Rs. 1,000,001 and above

30%


(a) In the case of a resident individual of the age of sixty years or above but less than eighty years, the basic exemption limit is Rs. 250,000
(b) In the case of a resident individual of the age of eighty years or above, the basic exemption limit is Rs 500,000
(c) Surcharge @10% is applicable on income exceeding Rs 1 crore, marginal relief for such person is available
(d) Surcharge is not applicable, Education Cess of 3% on income-tax is levied
(e) As per Finance Bill 2013 a rebate of Rs 2000 is allowed for individual having income up to Rs 5 Lacs.

2. Securities Transaction Tax (STT)

STT is levied on the value of taxable securities transactions as under :

Transaction

Rates

Payable By

1.Purchase/ sale of equity share

2.Purchase of units of equity oriented fund (delivery based)#

0.1%
NIL

Purchaser /Seller
Purchaser

1.Sale of units of equity oriented fund (delivery based)#

2.Sale of equity share,units of equity oriented mutual fund (non–delivery based)

0.001%
0.025%

Seller

1.Sale of futures in securities #

2. Sale of options in securities

0.010%
0.017%

Seller
Seller

Sale of an option in securities, where option is exercised

0.125%

Purchaser

Sale of unit of an equity oriented fund to the Mutual Fund#

0.001%

Seller

# effective 1 june 2013
3. Capital Gains

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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

Sale transaction other than mentioned above:

 

 

Individuals (resident and non-residents)

Progressive slab rates

20% with indexation; 10% without indexation (for units/ zero coupon bonds)

Firms including LLP (resident and non-resident)

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%

10% without indexation (for units/ zero coupon bonds) / 20% (for others)

Co-operative society

Progressive slab rates

(a) These rates will fur ther increase by applicable surcharge & education cess.

4. Dividend Stripping

The loss due to sale of units in the schemes (where dividend is tax free) will not be available for setoff 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.

5. 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.

Tax Implication on Dividend recieved by unit holders

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Individual/ HUF #

Domestic company*

NRI#/@

Dividend

Equity oriented schemes

Nil

Nil

Nil

Other than equity oriented schemes

Nil

Nil

Nil

 

Tax on distributed income (payable by the scheme) rates effective from 1 June 2013

Equity oriented schemes **

Nil

Nil

Nil

1.debt schemes
(other than infrastructure debt fund)

 

2.Infrastructure  debt fund

 

^^25%(12.5%) + 10% surcharge + 3% education cess

^^25%(12.5%) + 10% surcharge + 3% education cess

 

30% + 10% surcharge + 3% education cess

 

30% + 10% surcharge + 3% education cess

^^25%(12.5% )+ 10% surcharge + 3% education cess
^^5%(12.5% )+ 10% surcharge + 3% education cess

Money market and Liquid schemes

25% + 10% surcharge + 3% education cess

30% + 10% surcharge + 3% education cess

25% + 10% surcharge + 3% education cess

 

Capital Gain Taxation

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

Equity oriented schemes **

Nil

Nil

Nil

Other than equity oriented schemes

The unitholder has an option to pay tax @ 10% without indexation or 20% with indexation, whichever is beneficial

-Without indexation

10%

10%

10%

-With indexation

20%

20%

20%

 

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

Equity oriented schemes **

15%

15%

15%

Other than equity oriented schemes

30% ##

30%

30%


Tax Deducted at Source (Applicable only to NRI Investors)

 

Short term capital gains

Long term capital gains

Equity oriented schemes

15%

NIL

Other than equity oriented schemes

30%

20% (@@)

# after providing for indexation
^^ The rates appearing in the columns are effective from 1 June 2013.
^^^ Rates mentioned in the bracket depict the rates applicable for the period 1 April 2013 to 31 May 2013
# - Surcharge at the rate of 10% is to be levied in case of individual/ HUF unit holders where their income exceeds Rs 1 crore. (Effective from 1 April 2013)
* - Surcharge at the rate of 5% is to be levied for domestic corporate unit holders where the income exceeds Rs 1 crore but less than 10 crores and at the rate of 10%,where income exceeds 10 crores. (Effective from 1 April 2013)
@ - 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 for indexation. Incase of unlisted security, the TDS rate for NRI investors is 10% without indexation u/s 112 for long term capital gains.
## ^Assuming the investor falls into highest tax bracket.,Education Cess @3% will continue to apply on tax plus surcharge
** Securities Transaction Tax (STT) will be deducted on equity funds at the time of redemption and switch to the other schemes.
Mutual Fund would also pay STT wherever applicable on the securities bought/ sold.

Mutual Fund investments are subject to market risks, read the scheme information document carefully before investing.

Disclaimer : The information set out above is included for general information purposes only & 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 par ticipation in the Scheme. Income Tax benefits to the mutual fund & to the unitholder is in accordance with the prevailing tax laws as cer tified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. We will not be liable in any manner for the consequences of such action taken by you. The information contained herein is not intended as an offer or solicitation for the purchase and sales of any schemes.

Tax Deduction

Deductions under Chapter VI (sec 80C)

Deductions under Chapter VI (sec 80C)

  • Deduction under Pension scheme (sec 80C).
  • NSC (sec 80C).
  • Public Provident Fund (sec 80C).
  • Employees Provident Fund & Voluntary PF (sec 80C).
  • Children's Education (sec 80C).
  • Housing loan principal repayment (sec 80C).
  • Insurance premium, ULIP  (sec 80C).
  • Mutual Fund ELSS, ULIP,ULIS, Retirement Fund (sec 80C).
  • Deduction u/s 80 CCG, under RGESS is available on 50% of the amount invested subject to maximum of Rs. 50,000. The benefit is in addition to deduction of maximum Rs. 1,00,000 available u/s Sec 80C.
  • Higher Education Loan Interest Repayment (Sec 80E).
  • Donation to approved fund and charities (sec 80G).
  • Rent deduction (sec 80GG) only if HRA not received.
  • Medical Insurance Premium (sec 80D).
  • Medical for handicapped dependents (Sec 80DD).
  • Medical for specified diseases (Sec 80DDB).
  • Deduction for permanent disability (80U).
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