Dear All
I am preparing a table of Tax rate s for Indian resident on his/her worldwide investment income. Experts, can you please comments, if it is correct? One of the questions is, can you take indexation benefit for STCG, where purchase and sell are in different financial years? Also, please add to this table as well.
Income Tax Rates for Resident Indian
|
Type of Investment
|
Dividend/Interest |
ST CG (holding <12 M) |
LTCG (holding >12 M) |
Wealth Tax |
|
Units of a non equity oriented fund (Bond/Debt/Money/Market/liquid Fund) |
Exempt |
Marginal Rate (up to 30%) Indexation Allowed??? |
10% without Indexation, 20% with Indexation |
Not Applicable |
|
Units of an equity oriented fund (>65% in Equities) |
Exempt |
15% Indexation Allowed??? |
Exempt, when STT is paid |
Not Applicable |
|
Nonconvertible debentures (NCD) & Bonds |
Marginal Rate (up to 30%) |
Marginal Rate (up to 30%) Indexation Allowed??? |
10% without Indexation, 20% with Indexation |
Not Applicable |
|
Shares/Stocks listed at BSE/NSE |
Exempt |
15% Indexation Allowed??? |
Exempt, when STT is paid |
Not Applicable |
|
Shares/Stocks listed outside India (e.g., NASDAQ) |
Marginal Rate (up to 30%) (DTAA credit* available) |
Marginal Rate (up to 30%) Indexation Allowed??? (DTAA credit available) |
10% without Indexation, 20% with Indexation (DTAA credit available) |
Applicable |
|
Overseas Mutual Funds (Debt or Equity Oriented) |
Marginal Rate (up to 30%) (DTAA credit* available) |
Marginal Rate (up to 30%) Indexation Allowed??? (DTAA credit available) |
10% without Indexation, 20% with Indexation (DTAA credit available) |
Applicable |
|
Nonconvertible debentures (NCD), and Bonds |
Marginal Rate (up to 30%) (DTAA credit* available) |
Marginal Rate (up to 30%) Indexation Allowed??? (DTAA credit available) |
10% without Indexation, 20% with Indexation (DTAA credit available) |
Applicable |
* DTAA: Double Taxation Avoidance Agreement, Credit up to the tax paid to another country or chargeable in India, whichever is lower.
CAclubindia
