Capital Gains Tax is calculated at the rates given below:
|
Category |
Stock Fund |
MM/ Income/ other Funds and REITs |
||
|
|
Filer |
Non-Filer |
Filer |
Non-Filer |
|
Company |
10% |
10% |
25% |
25% |
|
Individuals/ AOPs |
10% |
10% |
10% |
15% |
For stock fund only:
- If dividend income is > Capital Gain, Tax rate will be 10%
- If dividend income is < Capital Gain, Tax rate will be 12.5%
Capital gain is exempt if units are held for more than 4 years.
Corporate Entities
Tax savings of 25%-35% as compared to bank deposits
Individuals
Tax savings of 0-10% as compared to bank deposits
Tax Credit on investment amount of upto Rs. 1,000,000/- in open end funds if the investment remains for two years (e.g. Tax rebate of Rs.148, 500/- calculated on Rs. 5 mn annual income and investment amount of Rs. 1 mn)
