Taxation Guide for India

Dividend and Capital gain taxation from 1st April 2007

Individuals Corporates NRI * Dividend Equity schemes Tax free Tax free Tax free Debt schemes Tax free Tax free Tax free Dividend distribution tax Equity schemes ** Nil Nil Nil Debt schemes 20% + 10% surch. + 3% cess 20% + 10% surch. + 3% cess 20% + 10% surch. + 3% cess   14.163% 22.66% 14.163%   Money market and Liquid schemes 25% +10% + 3% 25% +10% + 3% 25% 10% +3%   28.325% 28.325% 28.325% Long term Capital gains Equity schemes ** Nil Nil Nil Debt schemes 10% without indexetion or 20%  with indexetion whichever is lower + 10% + 3% cess 10% without indexetion or 20%  with indexetion whichever is lower + 10% + 3% cess 10% without indexetion or 20%  with indexetion whichever is lower + 10% + 3% cess   Without indexetion 11.33% 11.33% 11.33% With indexetion 22.66% 22.66% 22.66%   Short term Capital gains Equity schemes ** 10% flat +10%+3% 10% flat +10%+3% 10% flat +10%+3%   11.33% 11.33% 11.33%   Debt schemes 30% +10%+3% 30% +10%+3% 30% +10%+3%   33.99% 33.99% 33.99%

** STT @ 0.25% will be deducted on equity funds at the time of redemption and switch to the other schemes The short term/long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only. The rates that will be applied by the AMC at the time of redemption would be as follows

Short term Long term Equity 11.33% NIL Debt 33.99% 22.66%

 

Disclaimer
"The information contained herein has been obtained from sources published by third parties. While such publications are believed to be reliable, however, neither the AMC, the Trustees, the Fund nor any of their affiliates or representatives assume any responsibility for the accuracy of such information. The tax rates provided hereunder are only for the purpose of information and the actual tax incidence may vary from assessee to assessee. Investors are requested to kindly consult their tax advisors for ascertaining tax liability