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Tax Implication

Tax Reckoner for Investments in Mutual Fund Schemes for FY 2015-16
Capital Gains Taxation
Long Term***
Individual/HUF Domestic Company NRI
Equity Schemes (Listed) Nil Nil Nil
Equity Schemes (Unlisted) Nil Nil Nil
Debt Schemes (Listed) 20% with indexation + 12% Surcharge** + 3% Cess = 23.0720% 20% with indexation + 12% Surcharge* + 3% Cess = 23.0720% 20% with indexation + 12% Surcharge + 3% Cess = 23.0720%
Debt Schemes (Unlisted) 20% with indexation + 12% Surcharge** + 3% Cess = 23.0720% 20% with indexation + 12% Surcharge* + 3% Cess = 23.0720% 10% without indexation + 12% Surcharge + 3% Cess = 11.5360%
Short Term Capital Gains***
Equity Schemes 15% + 12% Surcharge** + 3% Cess = 17.3040% 15% + 12% Surcharge* + 3% Cess = 17.3040% 15% + 12% Surcharge + 3% Cess = 17.3040%
Debt Schemes As per Slab rates + 12% Surcharge** + 3% Cess 30% + 12% Surcharge* + 3% Cess As per Slab rates + 12% Surcharge + 3% Cess
Dividend Distribution Tax $
Equity Schemes Nil Nil Nil
Debt Schemes 25% + 12% Surcharge + 3% Cess 30% + 12% Surcharge + 3% Cess 25% + 12% Surcharge + 3% Cess
Tax Deducted at Source (Applicable to NRI Investors)
Short Term Capital Gains Long Term Capital Gains
Equity oriented Schemes (Listed) 15% + 12% Surcharge + 3% Cess = 17.3040% Nil
Equity oriented Schemes (Unlisted) 15% + 12% Surcharge + 3% Cess = 17.3040% Nil
Other than Equity oriented schemes (Listed) 30% + 12% Surcharge + 3% Cess = 34.6080% 20% with indexation + 12% Surcharge + 3% Cess = 23.0720%
Other than Equity oriented schemes (Unlisted) 30% + 12% Surcharge + 3% Cess = 34.6080% 10% without indexation + 12% Surcharge + 3% Cess = 11.5360%
Income Tax Rates for Individual/HUF
Total Income Tax Rates (c) Total Income Tax Rate (c)
Up to INR 250,000 (a) & (b) Nil @ INR 500,001 to INR 1,000,000 20%
INR 250,000 to INR 500,000 & 10% INR 1,000,001 and above 30%

* Surcharge @12% is applicable on domestic companies where the income exceeds INR 10 Crores and where income exceeds 1 crore but less than 10 crores, surcharge of 7% is applicable.
** Surcharge @12% is applicable on individuals/HUF having total income exceeding INR 1 Crore.
*** In order to qualify as long-term capital asset, the units of mutual funds (other than units of an equity oriented fund) should be held for a period of more than 36 months. In the case of units of equity oriented funds, units would qualify as long-term capital assets if held for more than 12 months.
@ In cases where the taxable income, reduced by long term capital gains of a resident individual/HUF is below the basic exemption limit, the long term capital gain will be reduced to the extent of this shortfall and only the balance of the long-term capital gain is chargeable to income-tax. The benefits of this provision is not available to NRIs.
$ For the purpose of determining the dividend distribution tax payable, the amount of distributed income shall be increased to such amount as would, after reduction of the dividend distribution tax on such increased amount at the specified tax rates, be equal to the amount of income distributed by the Mutual Fund.
& Rebate of upto INR 2,000 available for resident individuals whose total income does not exceed INR 500,000.
(a) In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is INR 300,000.
(b) In the case of a resident individual of the age of 80 years or more, the basic exemption limit is INR 500,000.
(c) Education cess is applicable at the rate of 2% on income-tax and secondary and higher education cess at the rate of 1% on income-tax.