|
|
| |
 |
|
|
 |
| Tax slab on capital gain |
|
| 1. |
Can NRI gift units of mutual fund schemes to their relatives in India? |
| |
Yes |
| |
|
| 2. |
Is the indexation benefit available to NRIs? |
| |
Yes, in case units are held for more than twelve months |
| |
|
| 3. |
What is the tax rate on short-term capital gain? |
| |
 In case of non-resident non-corporates - 30% plus
In case of foreign companies - 40% plus |
| |
|
| 4. |
Tax slab on capital gain |
| |
|
Tax Rates* under the Act |
TDS Rate* under the Act |
Short Term Capital Gain |
|
Residents |
NRIs / PIOs |
FIIs |
Residents |
NRIs / PIOs / other Non FII non-residents |
FIIs |
| Units of a non equity oriented fund |
Taxable at normal rates of tax applicable to the assessee |
30% without indexation benefit |
NIL |
30% for non residents non corporate, |
NIL |
(u/s 115AD) |
40% for non resident corporate, |
(u/s 195) |
units of an equity oriented fund |
10% on redemption of units where STT is payable on redemption (u/s 111A) |
|
|
Nil |
Long Term Capital Gain ** |
units of a non equity oriented fund |
10% without indexation, or 20% with indexation, whichever is lower |
10% with no indexation benefit |
NIL |
20% for non residents (u/s 195) |
NIL |
(u/s 112) |
(u/s 115AD) |
units of an equity oriented fund |
Exempt in case of redemption of units where |
|
Nil |
Nil |
STT is payable on redemption [u/s 10(38) ] |
|
|
| |
|
| |
*Plus surcharge as applicable: corporate, co-operative societies, firms and local authorities: 10%; Individuals/HUFs/BOIs/AOPs, with total income exceeding Rs.10, 00,000: 10%; Artificial juridical person: 10%.
** Capital Gains on redemption of units held for a period of more than 12 months
from the date of allotment.
*** As per section 111A of the Act, effective from 1/10/2004 short-term capital
gains on equity oriented fund is chargeable to tax at a Lower rate of 10 percent.
• Long Term Capital Gains arising from redemption of unit of a non equity oriented fund are exempt from tax, if gains are invested in specified bonds within 6 months from the date of redemption, under Section 54EC of the Act or if gains are invested in eligible equity issues within 6 months from the date of redemption, under Section 54ED of the Act. |
| |
In order for the unit holder to obtain the benefit of a lower rate under the DTAA, an eligibility certificate from unit holder’s Assessing Officer should be provided to
the Fund. |
. |
|
|
|
