TDS Equity Debt & Liquid Resident Investors No tax is required to be deducted at source from capital gains No tax is required to be deducted at source from capital gains Non-Resident Indian / Person of Indian Origin Short term capital gains : 15 % (plus surcharge and education cess) Tax on long term capital gains : Nil. For administrative convenience, the Fund will deduct 10% surcharge in all cases. Short term capital gains: 30% (plus surcharge and education cess). Tax on long term capital gains: 20% ^ (plus surcharge and education cess). Foreign Institutional Investors No tax has to be deducted on redemption/sale proceeds No tax has to be deducted on redemption/sale proceeds Non-Resident Corporates Short term capital gains: 15 % (plus surcharge and education cess). Tax on long term capital gains : Nil. For administrative convenience, the Fund will deduct 2.5% surcharge in all cases. Short term capital gains: 40% (plus surcharge and education cess). Tax on long term capital gains: 20% ^ (plus surcharge and education cess).

^ Considering the indexation benefit. For administrative convenience, the Fund will deduct 10% surcharge in all cases. All the above non-resident investors may also claim the tax treaty benefits available, if any. For details of applicability and eligibility of such benefits, the investors are requested to consult their tax advisors.

STT
On sale of the units of an equity oriented fund (as defined below) on a recognized stock exchange or to the Mutual Fund, the investor will also be charged with Securities Transaction Tax ('STT') as per the rates specified in para on STT, provided the transaction is also considered as a taxable securities transaction. In other cases, STT is not levied.

Provisions regarding Dividend income and Bonus

• According to the provisions of Section 94(7) of the Act, losses arising from the sale/redemption of units purchased within 3 months prior to the record date (for entitlement of dividends) and sold within 9 months after such date, is disallowed to the extent of income on such units (other than on sale/redemption) claimed as tax exempt.


• According to the provisions of Section 94(8) of the Act, if an investor purchases units within 3 months before the record date (for entitlement of bonus) and sells/redeems the units within 9 months after that date, and by virtue of holding the original units, he becomes entitled to bonus units, then the loss arising on transfer of original units shall be ignored for the purpose of computing his income chargeable to tax. In fact, the loss so ignored will be treated as cost of acquisition of such bonus units.

Religious and Charitable Trusts
Investments in the units of the schemes of the Mutual Fund by Religious and Charitable Trusts is an eligible investment under Section 11(5) of the Act, read with Rule 17C of the Income-tax Rules, 1962.

Wealth Tax
Units are not to be treated as assets as defined under Section 2(ea) of the Wealth-Tax Act, 1957 and 42 hence will not be liable to wealth-tax.

Note 1:
Effective 1 April 2008, the individuals (including NRIs / PIOs) and HUFs, are proposed to be taxed in respect of their total income at the following rates:

	Slab Tax rate * Refer to Note 2 Total income upto Rs.1,50,000# Nil More than Rs.150,000# but upto Rs.300,000 10% of excess over Rs.150,000# More than Rs.300,000 but upto Rs.500,000 20% of excess over Rs. 300,000 + Rs.15,000$ Exceeding Rs.500,000 30% of excess over Rs 500,000 + Rs.55,000$.

* plus surcharge and education cess as may be applicable (refer Note 2).
# for resident females below sixty-five years of age, Rs.150,000 has to be read as Rs.180,000 and for resident senior citizens above sixty-five years of age, Rs.150,000 has to be read as Rs.225,000
$ for resident females below sixty-five years of age, Rs.15,000 has to be read as Rs.12,000 and Rs.55,000 has to be read as Rs 52,000. Similarly for resident senior citizens above sixty-five years of age, Rs. 15,000 has to be read as 7,500 and Rs.55,000 has to be read as Rs. 47,500.

Note 2

	Assessee Rate of surcharge applicable Individuals (including NRIS/ PIOs), HUFs, Non-Corporate FIIs : Taxable income =< Rs.10 Lakhs p.a. No basic surcharge. Surcharge : Education cess of 3% is payable on the total amount of tax Individuals (including NRIs/ PIOs), HUFs and Noncorporate FIIs : Taxable income > Rs. 10 Lakhs p.a 10% basic surcharge. Additional surcharge : Education cess of 3% is payable on the total amount of tax plus surcharge Domestic companies : Taxable income =<Rs.10 Lakhs No basic surcharge. Surcharge : Education cess of 3% is payable on the total amount of tax Domestic companies : Taxable income >Rs.10 Lakhs 10% basic surcharge. Additional surcharge : Education cess of 3% is payable on the total amount of tax plus surcharge Foreign Companies (including corporate FII) : Taxable income =<10 Lakhs No basic surcharge. Additional surcharge: Education cess of 3% is payable on the total amount of tax plus surcharge Foreign Companies (including corporate FII) : Taxable income >Rs.10 Lakhs 2.5% basic surcharge. Additional surcharge: Education cess of 3% is payable on the total amount of tax plus surcharge