Capital Gain Taxation

Dividend Distribution Tax^$

Tax deducted at Source

(Applicable to NRI Investors)

#Income-tax rates for Individual/HUF

*surcharge at the rate of 12% is applicable on domestic companies where the income exceeds INR 10 Crores and where income exceeds 1 crores but is less than 10 crores surcharge of 7% is applicable. **Surcharge at the rate of 15% is applicable on Individuals/HUF having total income exceeding INR 1 Crore and where income exceeds 50 lakhs but is less than INR 1 crore surcharge of 10% is applicable. (a) In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is INR 300,000. (b) In the case of a resident individual of the age of 80 years or more, the basic exemption limit is INR 500,000. (c) Health and education cess is levied at 4% on income-tax and surcharge. ***In order to qualify as long-term capital asset, the units of equity oriented funds (excluding equity oriented Fund of Funds) should be held for a period of more than 12 months. Units of other mutual funds should be held for a period of more than 36 months to qualify as long-term capital assets. @ In cases where the taxable income, reduced by long term capital gains / short term capital gains of a resident individual/HUF is below the basic exemption limit, the long term capital gain / short term capital gains will be reduced to the extent of this shortfall and only the balance is chargeable to income tax. The benefits of this provision are not available to NRls. $ For the purposes of determining the dividend distribution tax payable, the amount of distributed income shall be increased to such amount as would, after reduction of the dividend distribution tax on such increased amount at the specified tax rates, be equal to the amount of income distributed by the Mutual Fund. & Rebate of upto INR 12,500 available for resident individuals whose total income does not exceed INR 500,000. However, such rebate should not be available with respect to income-tax on long-term capital gains arising on transfer of units of equity schemes and equity oriented Fund of Funds referred above. ## The corporate tax is charged at the rate of 25% (+ applicable Surcharge + 4% cess) for the financial year 2019-20 in the case of domestic companies having total turnover or gross receipts in the financial year 2017-18 not exceeding INR 250 crores. ### Aggregate long term capital gains up to Rs. 1 lakh arising on transfer of equity shares, equity oriented mutual funds, units of business trust should not be taxable. %Further, the cost of acquisition Of units purchased before 1 February 2018, to be higher of : (a) actual cost of acquisition of units; and (b) lower of fair market value as on 31 January 2018 and the sale / redemption value.

Note : (1) The rates above are based on the proposals in the Finance Bill. 2019. They will become law once passed by both the Houses of Parliament and when they receive the assent of the President. (2)The above rates are based on the assumption that the units are held by the investors as capital assets and not as stock in trade. (3) For the above purpose, the equity schemes referred above means a scheme of a mutual fund specified under section 10(230) of Income-tax Act, 1 961 which invests minimum of 65% Of the total proceeds of such fund in the equity shares of listed domestic companies. (4) For the above purpose, Equity oriented Fund Of Fund means a mutual fund specified under section 101230) Of the Act which invests minimum Of 90 % of the total proceeds in the units Of another fund which is traded on recognized stock exchange and such other fund also invests a minimum of go percent of its total proceeds in equity shares of listed domestic companies. (5) Fair Market Value for listed units of equity schemes or equity oriented Fund of Fund means highest price of the units quoted in the recognized stock exchange on 31 January 2018. However if there is no trading on stock exchange for such units on 31 January 2018, FW for such units means highest price on such exchange on date immediately preceding 31 January 2018. (6) Fair Market Value Of units not listed on recognised stock exchange means net asset value of such units as On 31 January 2018 (7) The NRI investors may be entitled to the benefits of respective tax treaties, if the same are more beneficial than above tax rates (subject to conditions).

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