Wednesday, August 21, 2013

INCOME TAX RATES ON MUTUAL FUND DEBT/EQUITY FY 2013-14


on Wednesday, August 21, 2013

Most of the Taxpayers have invested their surplus /saving in Debt or Equity mutual Fund.Some of us have invested after own research and some of on advice of agent or broker or on friend suggestion.To generate good earning we should  invest in good and best performing scheme.Besides this Tax treatment of these instrument is also important as tax rate applicable on debt and equity mutual funds varies from 0-30 % . If you have not selected a tax efficient investment then you net income will be on much lesser side.

Not all the products are suitable for all the persons ,so so one should select the Mutual fund on the basis of performance /expected return and Tax treatment applicable also.

We have complied a list in which tax implication of investment in mutual funds(debt and Equity) has been given for your ready reference. If you have any question then please leave comment below.


Snapshot of Income Tax as applicable for the Financial
Year 2013 - 14 with regard to Equity/Mutual Fund investments
Tax Implications on Dividend Received by Unit holders - (Individuals / HUF / NRIs)
Classification
Applicable Rates
Equity Oriented Funds
Nil
Debt Oriented Funds (Including Liquid /Money Market Funds)
Nil
Tax Implications on Dividend Distribution (DDT) - (Individuals / HUF / NRIs)
Classification
Applicable Rates
Equity Oriented Funds
Nil
Debt Oriented Funds (Including Liquid /Money Market Funds)
28.325% = 25%+ 10% (Surcharge)+ 3% (Cess)
Capital Gain Taxation - (Individuals / HUF / NRIs): Holding period more than 365* days
Classification
Applicable Rates
Equity Oriented Schemes
NIL
Debt Oriented Schemes -
(a) or (b) whichever is LESS
(a)10% Without Indexation
Without Indexation - 10.30%#
(b)20% With Indexation
With Indexation - 20.60%#
* - 366 days in case of leap year
# - in case income is more than Rs. 1 crore, surcharge @10% is applicable
Short Term Capital Gains - (Individuals / HUF / NRIs) - Holding Period less than 365* days
Classification
Applicable Rates
Equity Oriented Schemes
15.45% = 15%+ 3% (Cess)
Debt Oriented (as per respective tax slab)
10.30% = 10% + 3% (Cess)
20.60% = 20% + 3% (Cess)
30.90% = 30% + 3% (Cess)
33.99%** = 30% + 10%(Surcharge) + 3% (Cess)
** - Income more than Rs. 1 crore, surcharge @10% is applicable
Income Tax Rates - (Individual / HUF)
Taxable Income
Tax Rates (%)
Up to Rs. 200,000/-
Nil
Rs. 200,001 to Rs. 500,000/-
10
Rs. 500,001 to Rs. 10,00,000/-
20
Rs. 10,00,001 & Above
30
1. A rebate of Rs. 2,000/- u/s 87A(Read FAQ on Rebate u/s 87A)   for individual having Total Income upto Rs. 500,000/-
2.60 years and Above but below 80 Yrs, the basic exemption limit is Rs. 250,000/-
3.80 years and Above, the basic exemption limit is Rs. 500,000/-
4. Education Cess is applicable at the rate of 3% of Income Tax
5.10% Surcharge is applicable on income exceeding Rs. 1 crore.



Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under:
Transaction
Rate
Payable By
PURCHASE of units of equity oriented mutual fund on recognised stock exchanges (delivery based)
NIL
NA
SALE of units of equity oriented mutual fund on recognised stock exchanges (delivery based)
0.001
Seller

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