Tax on Equity Schemes^ |
Individual/ HUF* |
Domestic Company# |
NRI*$ (Individual) |
Long Term Capital Gains |
10% |
10% |
10% |
Short Term Capital Gains |
15% |
15% |
15% |
^ Securities Transaction Tax (STT) will be deducted on equity oriented schemes at the time of redemption / switch to the other schemes / sale of units. Mutual Fund would also pay STT wherever applicable on the securities bought / sold.
^^Finance Act 2018 levies income tax at the rate of 10%(without indexation benefit) on long term capital gains exceeding 1 lakh provided transfer of such units is subject to STT.
* Surcharge of 15% on applicable tax rate in case of Individual / HUF if the total income exceeds Rs. 1 crore and 10% where income exceeds Rs 50 lakhs but does not exceed Rs 1 crore.Health and Education cess to be levied @ 4% on aggregate of base tax and surcharge.
# Surcharge of 7% on applicable tax rate in case of Domestic Company where the total income exceeds Rs. 1 crore but is less than Rs. 10 crore. Surcharge of 12% if the total income of the Domestic Company exceeds Rs. 10 crore. Health and Education cess to be levied @ 4% on aggregate of base tax and surcharge.
$ Tax to be deducted at source (TDS) at the time of redemption of units in case of NRI investors only.
Note: As per Finance Act, 2014, for the purpose of determining tax payable, the amount of distributed income be increased to such amount as would, after reduction of tax from such increased amount, be equal to the income distributed by the Mutual Fund.
DISCLAIMER: The Income-tax benefits described in this document are as available under the present Income-tax Act, 1961 (the Act) as amended by Finance Act, 2008 and are available subject to relevant conditions. The above statement sets out the provisions of the tax law in summary manner only and is not a complete analysis or listing of all potential tax consequences of the purchase, ownership and disposal of units of a mutual fund. The information given is included only for general purpose and is based on the law and practise currently in force in India. The Investors/Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment will endure indefinitely. In view of the individual nature of tax consequences, each Investor / Unit holder is advised to consult his / her own professional tax advisor.