Know Tax Rates Specific to Mutual Funds

Tax Reckoner

2021-2022

2020-2021

2018-2019

2017-2018

Tax Reckoner 2021-2022

Snapshot of Tax rates specific to Mutual Funds

The rates are applicable for the financial year 2021-22 as per Finance act, 2021

Income Tax Rates
Option A
For Individuals, Hindu Undivided Family, Association of Persons, Body of
Individuals and Artificial juridical persons

Total Income	Tax Rates
Up to Rs. 2,50,000 ^(a)(b)	NIL
Rs. 2,50,001 to Rs. 5,00,000^(d)^(e)	5%
Rs. 5,00,001 to Rs. 10,00,000^(d)	20%
Rs. 10,00,001 and above^(c)(d)	30%

(a) In case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 300,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs 500,000.
(c) Rate of surcharge
    . 37% on base tax where specified income exceeds Rs. 5 crore;
    . 25% where specified income exceeds Rs. 2 crore but does not exceed Rs. 5 crore
    . 15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crore; and
    . 10% where total income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore.
    Specified income - Total income excluding income under the provisions of section 111A and 112A of the Act.
    Marginal relief for such person is available.
(d) Health and Education cess @ 4% on aggregate of base tax and surcharge.
(e) Individuals having total income not exceeding Rs. 500,000 can avail rebate of lower of actual tax liability or Rs. 12,500 .

Option B
For Individuals and Hindu Undivided Family

Total Income	Tax Rates
Up to Rs. 2,50,000 ^(a)(b)(d)	NIL
Rs. 2,50,001 to Rs. 5,00,000^(d)^(e)	5%
Rs. 5,00,001 to Rs. 7,50,000^(d)	10%
Rs. 7,50,001 to 10,00,000	15%
Rs. 10,00,001 to 12,50,000	20%
Rs. 12,50,001 to 15,00,000	25%
Rs. 15,00,001 and above	30%
For adopting Option B, most of the deductions/exemptions such as section 80C, 80D, etc. are to be foregone. The aforesaid regime is optional. Accordingly, Individuals and HUFs have the option to be taxed under either of the options. Option B once exercised can be changed in subsequent years (not applicable for business income).

Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.

Transaction	Rates	Payable By
Purchase/Sale of equity shares (delivery based)	0.1%	Purchaser/Seller
Purchase of units of equity oriented mutual fund	Nil	Purchaser
Sale of units of equity oriented mutual fund 0.001% Seller (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	0.05%^*	Seller
Sale of an option in securities, where option is exercised	0.125%	Purchaser
Sale of a futures in securities	0.01%	Seller
Sale or surrender or redemption of a unit of an equity oriented fund to an insurance company, on maturity or partial withdrawal, with respect to unit linked insurance policy issued by such insurance company on or after the first day of February, 2021	0.001%	Seller
Sale of units of an equity oriented fund to the Mutual Fund	0.001%	Seller
Sale of unlisted equity shares and units of business trust under an initial offer	0.2%	Seller

Special rates for non-residents as per domestic provisions
(1) The following incomes in the case of non-resident are taxed at special rates on gross basis:

Transation	Rates (a)
Dividend	20%
Interest received on loans given in foreign 20% currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC)	20%
Income received in respect of units purchased in 20% foreign currency of specifies Mutual Funds / UTI	20%
Royalty or fees for technical services^(b)	10%
Interest income from a notified infrastructure 5% debt fund, specified loan agreement and specified long-term bonds	5%
Interest on FCCB, Dividend on GDRs	10%

(a) These rates will further increase by applicable surcharge and education cess.
(b) 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 PE, the same is taxable at 40% (plus applicable surcharge and health and education cess) on net basis.
(c) Interest payable to a non-resident in respect of monies borrowed by any Indian company or business trust from a source outside India by way of issue of rupee denominated bond during the period 17 September 2018 to 31 March 2019 is exempt from tax.

(2) Tax on non-resident sportsmen or sports association on specified income @ 20% plus applicable surcharge and education cess.

Capital Gains rates applicable to unit holders as per domestic provisions

Transaction	Short-term capital gains tax rates (a)	Long-term capital gains tax rates (a)(b)
Sale transactions of equity shares / unit of an equity oriented fund which attract STT	15%	10%
Sale transaction other than mentioned above:
Individuals (resident and non-residents)	Progressive slab rates	20% / 10% ^(b)
Firms	30%
Resident Companies	30% /25%(d)/22%(e)/15%(f)
Overseas financial organisations specified in section 115AB	40% (corporate) 30% (non corporate)	10%
FIIs	30%	10%
Other Foreign companies	40%	20% / 10% ^(c)
Local authority	30%	20% / 10%
Co-operative society rates	Progressive slab or 20%	20% / 10%

* Income-tax at the rate of 10% to be levied on long-term capital gains exceeding Rs. 1 lakh (without indexation benefit and foreign exchange fluctuation)
(a) These rates will further increase by applicable surcharge & health and education cess.
(b) Income-tax rate of 20% with indexation and 10% without indexation.
(c) Long term capital gains arising to a non-resident from transfer of unlisted securities or shares of a company, not being a company in which the public are substantially interested, subject to 10 per cent tax (without benefit of indexation and foreign currency fluctuation.
(d) If total turnover or gross receipts in the financial year 2019-20 does not exceed Rs. 400 crores.
(e) This lower rate is optional and subject to fulfillment of certain conditions as provided in section 115BAA.
(f) This lower rate is optional for companies engaged in manufacturing business (set-up & registered on or after 1 October 2019) subject to fulfillment of certain conditions as provided in section 115BAB.
(g) Co-operative societies have the option to be taxed at progressive slab rates or 20% subject to fulfillment of certain conditions as provided in section 115BAD.

Personal Tax Scenarios (Amount in Rupees)

Individual	Total Income
Individual	475,000	825,000	1,000,000	1,200,000	1,500,000	5,650,000	11,150,000	21,150,000 #	51,150,000 #
Tax in FY 2020-21 (Option A)*	NIL***	49,400	85,800	132,600	226,200	1,673,100	3,722,550	7,946,250	21,532,290
Tax in FY 2020-21 (Option B) **	NIL***	50,700	78,000	119,600	195,000	1,638,780	3,686,670	7,907,250	21,489,546
Additional Tax burden/ (Savings) in Option B	-	1,300	(7,800)	(13,000)	(31,200)	(34,320)	(35,880)	(39,000)	(42,744)
Additional Tax burden/ (Savings) (%) in Option B	-	2.63%	(9.09%)	(9.80%)	(13.79%)	(2.05%)	(0.96%)	(0.49%)	(0.20%)

Resident senior citizen (age of 60 years but below 80 years)	Total Income
	475,000	825,000	1,000,000	1,200,000	1,500,000	5,650,000	11,150,000	21,150,000 #	51,150,000 #
Tax in FY 2020-21 (Option A) *	NIL***	46,800	83,200	130,000	223,600	1,670,240	3,719,560	7,943,000	21,528,728
Tax in FY 2020-21 (Option B) **	NIL***	50,700	78,000	119,600	195,000	1,638,780	3,686,670	7,907,250	21,489,546
Additional Tax burden/ (Savings) in Option B	-	3,900	(5,200)	(10,400)	(28,600)	(31,460)	(32,890)	(35,750)	(39,182)
Additional Tax burden/ (Savings) (%) in Option B	-	8.33%	(6.25%)	(8.00%)	(12.79%)	(1.88%)	(0.88%)	(0.45%)	(0.18%)

Resident senior citizen (age 80 years and above)	Total Income
Resident senior citizen (age 80 years and above)	475,000	825,000	1,000,000	1,200,000	1,500,000	5,650,000	11,150,000	21,150,000 #	51,150,000 #
Tax in FY 2020-21 (Option A) *	NIL***	36,400	72,800	119,600	213,200	1,658,800	3,707,600	7,930,000	21,514,480
Tax in FY 2020-21 (Option B) **	NIL***	50,700	78,000	119,600	195,000	1,638,780	3,686,670	7,907,250	21,489,546
Additional Tax burden/ (Savings) in Option B	-	14,300	5,200	-	(18,200)	(20,020)	(20,930)	(22,750)	(24,934)
Additional Tax burden/ (Savings) (%) in Option B	-	39.29%	7.14%	-	(8.54%)	(1.21%)	(0.56%)	(0.29%)	(0.12%)
* For purpose of tax calculation under Option A, ad hoc deduction of INR 150,000 has been claimed. The ad hoc deduction is only illustrative in nature. Basis actual deduction, the tax amount will vary. For purpose of tax calculation under Option B, no exemption/ deductions have been claimed. * NIL tax on account of rebate under section 87A. # If the said taxable income includes capital gains under section 111A and section 112A of the Act, then enhanced surcharge of 37% and 25% would not be applicable and accordingly effective tax rate would be lower.

Income-tax implications on income in respect of units of Mutual Fund
Type of Investor	Withholding tax rate
Resident	10%*
NRI	20%**

* Tax not deductible if dividend income in respect of units of a mutual fund is below Rs. 5,000 in a financial year. ** The base tax is to be further increased by surcharge at the rate of: . 37% on base tax where specified income exceeds Rs. 5 crore; . 25% where specified income exceeds Rs. 2 crore but does not exceed Rs. 5 crore; . 15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crore; and . 10% where total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore. Specified income - Total income excluding income under the provisions of section 111A and 112A of the Income-tax Act,1961 (‘the Act’) Further, “Health and Education Cess” is to be levied at 4% on aggregate of base tax and surcharge.

Capital Gain Taxation

	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	10%*	10%*	10%*
Short term capital gains	15%	15%	15%

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%/25%^^/22% ^^^/15%^^^^	30% ^

Tax Deducted at Source (Applicable only to NRI Investors)^#
	Short term capital gains^$	Long term capital gains^$
Equity oriented Schemes	15%	10%
Other than equity oriented Schemes	30% ^	Listed - 20%^& Unlisted - 10%*

* Income-tax at the rate of 10% (without indexation benefit and foreign exchange fluctuation) to be levied on long-term capital gains exceeding Rs. 1 lakh provided transfer of such units is subject to STT.
$ Surcharge to be levied at:
. 37% on base tax where specified income exceeds Rs. 5 crore;
. 25% where specified income exceeds Rs. 2 crore but does not exceed Rs. 5 crore;
. 15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crore; and
. 10% where total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore.
Specified income - Total income excluding income under the provisions of section 111A and 112A of the Act.
Further, Health and Education Cess to be levied at the rate of 4% on aggregate of base tax and surcharge.

@ Surcharge at 7% on base tax is applicable where total income of domestic corporate unit holders exceeds Rs 1 crore but does not exceed 10 crores and at 12% where total income exceeds 10 crores. However, surcharge at flat rate of 10 percent to be levied on base tax for the companies opting for lower rate of tax of 22%/15%. Further, “Health and Education Cess” to be levied at the rate of 4% on aggregate of base tax and surcharge.

# Short term/ long term capital gain tax (along with applicable Surcharge and Health and Education Cess) will be deducted at the time of redemption of units in case of NRI investors.

& After providing indexation.
** Without indexation.
^ Assuming the investor falls into highest tax bracket.
^^ If total turnover or gross receipts in the financial year 2018-19 does not exceed Rs. 400 crores.
^^^ This lower rate is optional and subject to fulfillment of certain conditions as provided in section 115BAA.
^^^^ This lower rate is optional for companies engaged in manufacturing business (set-up & registered on or after 1 October 2019) subject to fulfillment of certain conditions as provided in section 115BAB.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Further, the domestic companies are subject to minimum alternate tax (except for those who opt for lower rate of tax of 22%/15%) not specified in above tax rates.

Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.

Transfer of units upon consolidation of plans within mutual fund schemes in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.

Relaxation to non-residents from deduction of tax at higher rate in the absence of PAN subject to them providing specified information and documents.

The Finance Act, 2021 introduced section 206AB (applicable from 1 July 2021) stating that tax to be deducted at twice the applicable rate in case of payments to specified person (except non-resident not having permanent establishment in India) who have not filed return of income for past two assessment years for which time limit for filing return has expired and the aggregate of tax deducted at source in his case is Rs. 50,000 or more in each of these two years. Additionally, if provisions of section 206AA are also applicable then tax to be deducted at higher of the two rates provided i.e. rate as per section 206AB or section 206AA.

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.

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 accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone.

Income Tax Slabs & Rates 2020-2021

The Finance Minister introduced new tax regime in Union Budget, 2020 wherein there is an option for individuals and HUF (Hindu Undivided Family) to pay taxes at lower rates without claiming deductions under various sections. The following Income Tax slab rates are notified in new tax regime vs old tax regime:

Income Tax Slab	Tax rates as per new regime	Tax rates as per old regime
0 - 2,50,000	Nil	Nil
2,50,001 - 5,00,000	5%	5%
5,00,001 - 7,50,000	12500 + 10% of total income exceeding 5,00,000	12500 + 20% of total income exceeding 5,00,000
7,50,001 - 10,00,000	37500 + 15% of total income exceeding 7,50,000	62500 + 20% of total income exceeding 7,50,000
10,00,001 - 12,50,000	75000 + 20% of total income exceeding 10,00,000	112500 + 30% of total income exceeding 10,00,000
12,50,001 - 15,00,000	125000 + 25% of total income exceeding 12,50,000	187500 + 30% of total income exceeding 12,50,000
Above 15,00,000	187500 + 30% of total income exceeding 15,00,000	262500 + 30% of total income exceeding 15,00,000

New tax regime slab rates are not differentiated based on age group. However, under old tax regime the basic income threshold exempt from tax for senior citizen (aged 60 to 80 years) and super senior citizens (aged above 80 years) is 3 lakh and 5 lakh respectively.
However, under new tax regime person cannot claim up to 70 income tax deductions while calculating taxes. Hence, every person has to make his/her own calculation as per old and new tax regime and calculate which one is beneficial based on type of investments made and returns earned on those investments.

Tax Reckoner 2018-2019

Snapshot of Tax rates specific to Mutual Funds

The rates are applicable for the financial year 2018-19 and subject to enactment of the Finance Bill, 2018

Effective : 1st. April 2018.

Income Tax Rates
For Individuals, Hindu Undivided Family, Association of Persons, Body of
Individuals and Artificial juridical persons

Total Income	Tax Rates
Up to Rs. 2,50,000 ^(a)(b)(d)	NIL
Rs. 2,50,001 to Rs. 5,00,000^(d)^(e)	5%
Rs. 5,00,001 to Rs. 10,00,000^(d)	20%
Rs. 10,00,001 and above^(c)(d)	30%

(a) In case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 300,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs 500,000.
(c) Surcharge at 15% on base tax, is applicable where income exceeds Rs. 1 crore and at 10% where income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore. Marginal relief for such person is available.
(d) Finance Bill, 2018 provides for Health and Education cess @ 4% on aggregate of base tax and surcharge.
(e) A rebate of lower of actual tax liability or Rs. 2,500 in case of individuals having total income of less than Rs. 350,000.

Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.

Transaction	Rates	Payable By
Purchase/Sale of equity shares (delivery based)	0.1%	Purchaser/Seller
Purchase of units of equity oriented mutual fund	Nil	Purchaser
Sale of units of equity oriented mutual fund 0.001% Seller (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	0.05%^*	Seller
Sale of an option in securities, where option is exercised	0.125%	Purchaser
Sale of a futures in securities	0.01%	Seller
Sale of units of an equity oriented fund to the Mutual Fund	0.001%	Seller
Sale of unlisted equity shares and units of business trust under an initial offer	0.2%	Seller

Special rates for non-residents as per domestic provisions
(1) The following incomes in the case of non-resident are taxed at special rates on gross basis:

Transation	Rates (a)
Dividend ^(b)	20%
Interest received on loans given in foreign 20% currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC)	20%
Income received in respect of units purchased in 20% foreign currency of specifies Mutual Funds / UTI	20%
Royalty or fees for technical services	10%
Interest income from a notified infrastructure 5% debt fund, specified loan agreement and specified long-term bonds	5%
Interest on FCCB, FCEB / Dividend on GDRs^(b)	10%

(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 PE, the same is taxable at 40% (plus applicable surcharge and education cess) on net basis.

(2) Tax on non-resident sportsmen or sports association on specified income @ 20% plus applicable surcharge and education cess.

Capital Gains rates applicable to unit holders as per domestic provisions

Transaction	Short-term capital gains tax rates (a)	Long-term capital gains tax rates (a)(b)
Sale transactions of equity shares / unit of an equity oriented fund which attract STT	15%	10%
Sale transaction other than mentioned above:
Individuals (resident and non-residents)	Progressive slab rates	20% / 10%©
Firms	30%
Resident Companies	30%(d) / 25%(e)
Overseas financial organisations specified in section 115AB	40% (corporate) 30% (non corporate)	10%
FIIs	30%	10%
Other Foreign companies	40%	20% / 10%(c)
Local authority	30%	20% / 10%
Co-operative society rates	Progressive slab	20% / 10%

(a) These rates will further increase by applicable surcharge & education cess.
(b) Indexation benefit as applicable
(c) Long term capital gains arising to a non-resident from transfer of unlisted securities or shares of a company, not being a company in which the public are substantially interested, subject to 10 per cent tax (without benefit of indexation and foreign currency fluctuation
(d) This rate applies to companies other than companies engaged in manufacturing business who are proposed to be taxed at lower rate subject to fulfillment of certain conditions
(e)If total turnover or gross receipts of the financial year 2016-17 does not exceed Rs. 250 crores.

Dividend Income :
Additional tax of 10% (plus applicable surcharge and health and education cess) is applicable in case of all resident tax payers, excluding domestic companies and few other specified entities for dividend income of more than Rs. 10,00,000 received from a domestic company or companies.

Personal Tax Scenarios (Amount in Rupees)

Individual	Total Income
Individual	1,000,000	5,000,000	11,000,000
Tax in FY 2017-18	1,15,875	1,657,013	3,686,756
Tax in FY 2018-19	1,17,000	1,673,100	3,722,550
Additional Tax Burden/(Savings)	1,125	16,085	35,794
Additional Tax Burden/ (Savings) (%)	0.97%	0.97%	0.97%

Resident senior citizen (age of 60 years but below 80 years)	Total Income
	1,000,000	5,000,000	11,000,000
Tax in FY 2017-18	1,13,300	1,654,180	3,683,795
Tax in FY 2018-19	1,14,400	1,670,240	3,719,560
Additional Tax Burden/(Savings)	1,100	16,060	35,765
Additional Tax Burden/ (Savings) (%)	0.97%	0.97%	0.97%

Resident very senior citizen at the age of 80 years and above	Total Income
	1,000,000	5,000,000	11,000,000
Tax in FY 2017-18	1,03,000	1,642,850	3,671,950
Tax in FY 2018-19	1,04,000	1,658,800	3,707,600
Additional Tax Burden/ (Savings)	1,000	15,950	35,650
Additional Tax Burden/ (Savings) (%)	0.97%	0.97%	0.97%
Marginal relief as applicable would be available

Tax Implications on Dividend received by Unit holders

	Individual HUF	Domestic Company	NRI
Dividend
Equity oriented Schemes	Nil	Nil	Nil
Debt oriented Schemes	Nil	Nil	Nil

Tax on Distributed income rates (payable by the scheme)**
Equity oriented Schemes*	10% + 12% Surcharge + 4% Cess = 11.648%	10% + 12% Surcharge + 4% Cess = 11.648%	10% + 12% Surcharge + 4% Cess = 11.648%
money market and Liquid schemes	25% + 12% Surcharge + 4% Cess =29.12 %	30% + 12% Surcharge + 4% Cess=34.944 %	25% + 12% Surcharge + 4% Cess=29.12 %
Infrastructure Debt Fund	25% + 12% Surcharge + 4% Cess=29.12 %	30% + 12% Surcharge + 4% Cess=34.944 %	5% + 12% Surcharge + 4% Cess=5.824 %

* Security transaction tax (STT) will be deducted on equity funds at the time of redemption / switch to the other schemes / sale of units.
** For the purpose of determining the tax payable by the scheme, the amount of distributed income has to be increased to such amount as would, after reduction of tax on such increased amount, be equal to the income distributed by the Mutual Fund. In other words, the amount payable to unit holders is to be grossed up for determining the tax payable and accordingly, the effective tax rate would be higher. The above-mentioned rate is without considering the grossing up. Surcharge mentioned in the above table is payable on base tax. Further, "Education cess" and "Secondary and Higher Education cess" is proposed to be discontinued. However, new cess called Health and Education Cess is proposed to be levied at 4% on aggregate of base tax and surcharge.

Capital Gain Taxation

	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	10%*	10%*	10%*
Short term capital gains	15%	15%	15%

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% ^ ^ / 25%^ ^ ^	30% ^

Tax Deducted at Source (Applicable only to NRI Investors)^#
	Short term capital gains^$	Long term capital gains^$
Equity oriented Schemes	15%	10%
Other than equity oriented Schemes	30% ^	Listed - 20%^& Unlisted - 10%*

$ Surcharge at 15% to be levied in case of individual/ HUF unit holders where their respective 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 10 crores and at 12%, where income exceeds 10 crores.
# Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors.
& After providing indexation.
* Without indexation and without taking into consideration foreign exchange fluctuation
^ Assuming the investor falls into highest tax bracket.
$ @ Education Cess at 3% will continue to apply on aggregate of tax and surcharge.
^^This rate applies to companies other than companies engaged in manufacturing business who are proposed to be taxed at lower rate subject to fulfillment of certain conditions. Further, the domestic companies are subject to minimum alternate tax not specified in above tax rates.
Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.

The Finance Bill, 2016 proposes to provide tax exemption to unit holders vis-Ã -vis transfer of units upon consolidation of the plans within a scheme of mutual fund in accordance with SEBI (Mutual Funds) Regulations, 1996.
In the absence of PAN of the investors, withholding tax / TDS applies at a higher rate if tax is deductible on the amount payable to such investor. The Finance Bill, 2016 proposes to provide relaxation to nonresidents from deduction of tax at higher rate in the absence of PAN subject to fulfillment of certain conditions.

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 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 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.

Tax Reckoner 2017-2018

Snapshot of Tax rates specific to Mutual Funds

The rates are applicable for the financial year 2017-18 as per Finance Act, 2017.

Effective : 1st. April 2017.

Income Tax Rates
For Individuals, Hindu Undivided Family, Association of Persons, Body of
Individuals and Artificial juridical persons

Total Income	Tax Rates
Up to Rs. 2,50,000 ^(a)(b)	NIL
Rs. 2,50,001 to Rs. 5,00,000^(d)(e)	5%
Rs. 5,00,001 to Rs. 10,00,000^(d)	20%
Rs. 10,00,001 and above^(c)(d)	30%

(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 @ 15% is applicable where income exceeds Rs. 1 crore. Finance Act, 2017 provides for surcharge at 10% to be levied where income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore. Marginal relief for such person is available.
(d) Education cess is applicable @ 3% on aggregate of tax and surcharge.
(e) Finance Act, 2017 provides a rebate of lower of actual tax liability or Rs. 2,500 (against earlier rebate of R. 5,000) in case of individuals having total income of less than Rs. 3,50,000.

Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.

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	0.05%	Seller
Sale of an option in securities, where option is exercised	0.125%	Purchaser
Sale of a futures in securities	0.01%	Seller
Sale of unit of an equity oriented fund to the Mutual Fund	0.001%	Seller
Sale of unlisted equity shares and units of business trust under an initial offer	0.2%	Seller

Special rates for non-residents
(1) The following incomes in the case of non-resident are taxed at special rates on gross basis:

Transation	Rate (a)
Dividend ^(b)	20%
Interest received on loans given in foreign currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC)	20%
Income received in respect of units purchased in foreign currency of specified Mutual Funds / UTI	20%
Royalty or fees for technical services^(c)	10%
Interest income from a notified infrastructure debt fund, specified loan agreement, specified long-term bonds and rupee denominated bonds	5%
Interest on FCCB, FCEB / Dividend on GDRs^(b)	10%

(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.

(2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus applicable surcharge and education cess.

Capital Gains

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%^(c)
Firms	30%
Resident Companies	30%(d)/25%(e)
Overseas financial organisations specified in section 115AB	40% (corporate) 30% (non corporate)	10%
FIIs	30%	10%
Foreign companies other than ones mentioned above	40%	20% / 10%^(C)
Local authority	30%	20% / 10%
Co-operative society rates	Progressive slab	20% / 10%

* Finance Act, 2017 exempt income arising on transfer of equity share (subject to certain exceptions) acquired on or after 1st October 2004 only if the acquisition of such shares is chargeable to STT.

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

(b) Indexation benefit wherever applicable.

(c) Long term capital gains arising to a non-resident from transfer of unlisted securities or shares of a company, not being a company in which the public are substantially interested, subject to 10 per cent tax (without benefit of indexation and foreign currency fluctuation.

(d) This rate applies to companies other than companies engaged in manufacturing business who are to be taxed at lower rate subject to fulfillment of certain conditions.

(e) If total turnover or gross receipts of the financial year 2015-16 does not exceed Rs. 50 crores.

Personal Tax Scenarios (Amount in Rupees)

Individual	Income Level
Individual	1,000,000	5,500,000	11,000,000
Tax in FY 2016-17	128,750	1,519,250	3,701,563
Tax in FY 2017-18	115,875	1,657,013	3,686,756
Additional Tax Burden/(Savings)	(12,875)	137,763	(14,807)
Additional Tax Burden/(Savings) (%)	(10%)	9.07%	(0.40%)

Resident senior citizen (age of 60 years but below 80 years)	Income Level
	1,000,000	5,500,000	11,000,000
Tax in FY 2016-17	123,600	1,514,100	3,695,640
Tax in FY 2017-18	113,300	1,654,180	3,683,795
Additional Tax Burden/(Savings)	(10,300)	140,080	(11,845)
Additional Tax Burden/(Savings) (%)	(8.33%)	9.25%	(0.32%)

Resident very senior citizen at the age of 80 years and above	Income Level
	1,000,000	5,500,000	11,000,000
Tax in FY 2016-17	103,000	1,493,500	3,671,950
Tax in FY 2017-18	103,000	1,642,850	3,671,950
Additional Tax Burden/(Savings)	NA	149,350	NA
Additional Tax Burden/(Savings) (%)	NA	10%	NA
Marginal relief as applicable would be available

Tax Implications on Dividend received by Unit holders

	Individual HUF	Domestic Company	NRI
Dividend
Equity oriented Schemes	Nil	Nil	Nil
Debt oriented Schemes	Nil	Nil	Nil

Rate of tax on distributed income (payable by the MF scheme)**
Equity oriented Schemes*	Nil	Nil	Nil
Money market or Liquid schemes / debt schemes (other than infrastructure debt fund)	25% + 12% Surcharge + 3% Cess=28.84 %	30% + 12% Surcharge + 3% Cess=34.608 %	25% + 12% Surcharge + 3% Cess=28.84 %
Infrastructure Debt Fund	25% + 12% Surcharge + 3% Cess=28.84 %	30% + 12% Surcharge + 3% Cess=34.608 %	5% + 12% Surcharge + 3% Cess=5.768 %

* Securities transaction tax (STT) shall be payable on equity oriented mutual funds schemes at the time of redemption/switch to the other schemes/sale of units.
** For the purpose of determining the tax payable by the scheme, the amount of distributed income has to be increased to such amount as would, after reduction of tax on such increased amount, be equal to the income distributed by the Mutual Fund. In other words, the amount payable to unit holders is to be grossed up for determining the tax payable and accordingly, the effective tax rate would be higher.

Capital Gain Taxation

	Individual / HUF ^$	Domestic Company ^@	NRI ^$
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%

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%^^/25%^^^	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% ^	10%* (for unlisted) & 20%^& (for listed)

$ Surcharge at 15%, is applicable where income of Individual/HUF unit holders exceeds Rs. 1 crore. As per Finance Act, 2017, surcharge at 10% to be levied in case of individual/ HUF unit holders where income of such unit holders exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore. Further, Education Cess at 3% will continue to apply on aggregate of tax and surcharge.
@ Surcharge at 7% is applicable where income of domestic corporate unit holders exceeds Rs 1 crore but does not exceed 10 crores and at 12% where income exceeds 10 crores. Further, Education Cess at 3% will continue to apply on aggregate of tax and surcharge.
# Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors. & After providing indexation.
* Without indexation.
^ Assuming the investor falls into highest tax bracket.
^^This rate applies to companies other than companies engaged in manufacturing business who are taxed at lower rate subject to fulfillment of certain conditions.
^^^ If total turnover or gross receipts during the financial year 2015-16 does not exceed Rs. 50 crores.
Further, the domestic companies are subject to minimum alternate tax not specified in above tax rates.
Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.
Transfer of units upon consolidation of plans within mutual fund schemes in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains. Relaxation to non-residents from deduction of tax at higher rate in the absence of PAN subject to them providing specified information and documents.

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 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.

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 accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone.

Now invest in Mutual Funds from the comforts of your home or office.For any other information please feel free to call RupeeInvest mutual fund distributor at 9891237575 or 9990237575 or 9533655788.

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