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NRI - TDS on redemption of Mutual Funds??

Will TDS be deducted on the redemption of units? If yes what will be the basis of deduction of TDS.

 i) Resident Investors TDS is not deducted on the sale proceeds for Resident Indians. As per Central Board of Direct Taxes (CBDT) Circular No.715 dated 8th August 1995, in case of resident unit holders, no tax is required to be deducted from capital gains arising at the time of redemption of the units.

ii) Non-Resident Investors
In case of NRI's, TDS will be deducted on the sale proceeds. The TDS will deducted depending upon whether it is a short-term capital gain or long term capital gains.

TDS For Equity Funds for NRI

Long-Term Capital Gains on Equity Funds :
No tax is deductible from the proceeds payable to non-resident investors from long-term capital gains arising out of redemption of units of an equity-oriented fund.

Short-Term Capital Gains on Equity Fund
s As per Part II of the First Schedule to the Finance Bill 2010 {Clause 1 (b) (i) (C)}, the mutual fund is liable to deduct tax at 15% on short-term capital gains. The TDS is to be increased by applicable surcharge.
TDS rate for Short Term = 15% (A)
Surcharge = A x10% = 1.5% (B)
Education Cess = A + B x 3% = 0.495% (C)
TDS to be deducted = A + B + C = 16.99%

TDS  For Non Equity Funds (Debt, Gold ETF fund) for NRI

Long-Term Capital Gains 
TDS rate = 20% with indexation benefit. (A)
Surcharge = A x 10% = 2% (B)
Education Cess = A + B x 3% = 0.66% (C)
TDS to be deducted = A + B + C = 22.66%

Short-Term Capital Gains

TDS rate = 30% (A)
Surcharge = A x 10% = 3% (B)
Education Cess = A + B x 3% = 0.99% (C)
TDS to be deducted = A + B + C = 33.99%

NFO Launch : Kotak FMP Series 68

The New Fund Offer of the scheme opens on December 05, 2011 (Monday) and closes on December 07, 2011 (Wednesday).

Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.

Growth and Dividend Payout.

The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme.

The units of the scheme will be listed on BSE on allotment. The units of the scheme may also be listed on the other stock exchanges.

BENCHMARK:CRISIL Short Term Bond Index.

Units of this scheme will be listed on Bombay Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.

370 Days after the date of allotment of units.

Purchase : At KMAMC Authorized Collection Centre’s indicated on the back cover of the SID.

Switch :
At KMAMC Authorized Collection Centre’s, CAMS Investor Service Centre’s & CAMS Transaction Points indicated on the back cover of the SID.

For any investor related queries, request you to please call on our toll free number- 1800 222 626 / 66384400 or write at For any distributor queries, please feel free to contact your relationship manager or write back to us at

e-safe facility for icici direct customers..

What is eSafe?
eSafe helps you with the convenience and flexibility to store and retrieve your important documents when you need them. You can store scanned copies of your Passport, PAN, Agreements or even medical reports securely under your ICICI direct account account.

eSafe helps eliminate your need to carry copies of your important documents either as a physical photo copy or in storage devices like Compact Disks, USB token etc.

With eSafe, you can store documents in one central secure location and know that your documents are just a few clicks away.

Esafe facility will offer 25 MB free online space to each of its customers for storing their documents. ICICIdirect eSafe can also be utilized to store scanned copies of passport, permanent account number (PAN), important agreements, medical reports and more such documents.

Key Benefits:

  • Secure and Accessible - Your eSafe ensures that your documents are secure and accessible only via a secure login.
  • Anywhere, anytime access - Your eSafe is available to you from anywhere, via an Internet connection under your ICICI direct account login.
  • Durability and Longevity - Storage of documents in CD's or other portable media is prone to handling them with care, your eSafe lets you store your documents online, which ensures durability and longevity.
  • No storage or retrieval hassles - Since your documents are stored in a digital format under your ICICIdirect account, the account is available to you wherever you go.
Source: icici

How to go ahead with PayPal for Indian PayPal Users!

I am getting lot of queries related to PayPal as how to go ahead with PayPal. Here are some terms which help you to understand paypal in better way..

1. What is Paypal?
If you're new to PayPal, you've come to the right place.PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. PayPal is a service that enables you to pay, send money, and accept payments without revealing your financial information. PayPal encrypts your sensitive financial information so the only person who can see it is you. PayPal enables global ecommerce by making payments possible across different locations, currencies, and languages.
Example: You are from India, and working online in different websites,(you earn in different currencies like dollar, euro, pound,  so you get paid money in PayPal and then after you can easily transfer that money from paypal to your Indian bank account.

2. Please Explain process for opening PayPal account for Indian PayPal users?? What things are required to open paypal account?
In order to create paypal account you need to click the link to sign up 
or visit and click the link for sign up.

After that you need to select type of paypal account which suits you the most. PayPal offers three types of accounts for Indian PayPal users:

1. Personal account is for online shoppers to make the payments or even you can able to receive funds in PayPal, for the beginners its good to start with PayPal personal account.   Recommended for individuals who shop and pay online, or wish to send or receive personal payments for shared expenses such as splitting of dinner bills or rental charges.

2. Premier PayPal account is for casual sellers who occasionally buy online.

3. PayPal Business account is for merchants with a company or group name and high transaction volumesRecommended for merchants who operate under a company/group name. It offers additional features such as allowing up to 200 employees limited access to your account and customer service email alias for customer issues to be routed for faster follow-ups.

You can upgrade any time, so don't worry if selected Personal account when started (created) your paypal account.

How to upgrade:
Here's how to upgrade to a Premier or Business account:
  1. Log in to your PayPal account.
  2. Click Upgrade Account in the Enhance Your Account box.
  3. Click Upgrade Now.
  4. Choose Business or Premier account.
  5. Click Continue.
  6. For a Business account, fill in your business information and click Continue.

What is required for Indian PayPal users for creating PayPal Account:
1. Email account
2. Pan number details
3. Bank account
4. Mobile Number
5. Your complete address

Please make sure when creating account add the correct details and not give wrong details as it will create problem in future if you created account with wrong details.

The name registered on your PayPal account must match the name registered on your bank account. Each time you make a transfer request, PayPal automatically includes your registered name with your bank information.

For PayPal customers who have a Business account, the Business name is automatically matched with the bank information added to the account.

About Email address
Your email address registered in PayPal is your login detail as well as the important as when receiving or sending money,  you use that email address.
PayPal allow to add up to eight email addresses in your PayPal account.

About Pan number details
PAN or permanent account number refers to a 10-digit alphanumeric combination issued in the form of a laminated card, by the Income Tax Department in India. You can find the 10-digit number printed at the front of your card.
PAN is compulsory for all financial transactions in accordance with Indian laws and regulations.
You need to have a PAN (made mandatory by the Income Tax Department) in order to file for return of income as well as on all correspondence with any income tax authority in the country.
To apply for a PAN card all you need to do is submit the application form number 49 A to the Indian Revenue authorities.
To download PAN application forms or to learn more, visit

About Bank account Number:
You shall have or open a functional bank account. After registering for the PayPal Service, you shall have to provide "Your Information" as contemplated under this Agreement and any other information including but not limited to your bank account number and the relevant Indian Financial Systems Code which may be required by PayPal in order to verify and authenticate your bank account and activate the PayPal Service. 

What are the fees for PayPal accounts?

Opening an account:
PayPal doesn't charge a fee to open a PayPal account.

* If foreign exchange or currency conversion is required to complete any transaction, this will be performed by a licensed financial institution. The foreign exchange rate is adjusted periodically on a daily basis to reflect market conditions and includes a 2.5% processing fee which is retained by PayPal. The exact exchange rate that applies to your transaction will be displayed to you at the time of the transaction.

How to Verify a PayPal Account 
Log into PayPal and go to the "Overview" page of your account.

Click on the link under your name labeled "Get Verified."

Choose the method you wish to use to verify your account.

PayPal currently offers two options for verification:With Bank details

With credit card

Add bank details, click the link to verify your PayPal account, paypal will send two small amounts in your bank account, check those details by visiting your bank account and confirm the same in paypal to get the account verified.

Provide a valid credit card in your name.Enter the required credit information and then click "Continue. Verify that you have entered all information correctly and then click the "Confirm" button. Submit the form after the final verification page loads, then check your email for additional information from PayPal.Monitor your credit account that you are using for the verification process. Two small charges will be placed on your credit card if that is your chosen verification method.

Log into your PayPal account to report the deposits or charges after they appear on your statement.

Go the "Get Verified" link again and enter the deposits that were made into your account.

Alternately, enter the charges on your credit card at the website along with the codes printed next to them on your statement.

PayPal will credit your account back for the charges made.

Your account is automatically verified after entering credit card charges.

Types of risks associated with Mutual Fund Investment!!

Risk is an inherent aspect of every form of investment. For Mutual Fund investments, risks would include variability, or period-by-period fluctuations in total return.

Market risk: At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. This change in price is due to 'market risk'.

Inflation risk: Sometimes referred to as 'loss of purchasing power'. Whenever the rate of inflation exceeds the earnings on your investment, you run the risk that you'll actually be able to buy less, not more.

Credit risk: In short, how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised, or repay your principal when the investment matures?

Interest rate risk: Interest rate movements in the Indian debt markets can be volatile leading to the possibility of large price movements up or down in debt and money market securities and thereby to possibly large movements in the NAV.

Other risks associated are:
  • Investment risks 
  • Liquidity risk 
  • Changes in the government policy

PPF will get higher rate of return from December 1, 2011

PPF account holders will get higher rate of return from December 1, 2011. The government today notified increase in interest rates on public provident fund (PPF) to 8.6 per cent from 8 per cent now, and also raised ceiling on annual contributions to the fund to Rs one lakh from Rs 70,000.
Other changes in Small Savings Schemes and Kisan Vikas Patra (KVP)

1. Interest rates on Post office deposits would also see a rise in interest rates from 3.5% to 4%.

2. The sale of Kisan Vikas Patras (KVP) will be discontinued from November 30, 2011.

3. Monthly income schemes will earn an interest of 8.2 per cent, but accounts opened on or after December 1 will not be entitled for bonus.

4. Monthly income schemes (MIS) would see a reduced period of maturity from 6 to 5 years

Dematerialization of Mutual Fund Units!!

Dematerialization of Mutual Fund Units means holding mutual fund units in demat form. SEBI now allowed mutual fund investments to be held in dematerialized form. It means that investors will have the option to convert their existing mutual fund investments into dematerialized form and buy/sell units through stock exchanges.

Investors desirous of receiving the allotment of units in dematerialized (“demat”) form under various options of the Scheme(s)/Plan(s) offered by the Fund will now have an option in the subscription form to provide their demat account details. Currently, the option to subscribe/hold units in demat mode is not available under the Daily/Weekly/Fortnightly Dividend Option(s) and for Systematic Investment Plan (SIP) transactions.

A demat account for mutual funds will be similar to the one for shares. You can subscribe to mutual fund units through your stock broker using the stock exchange platform. On subscription, the asset management company (AMC) or Registrar and Transfer Agent (RTA) will credit the mutual fund units to your demat account.

For existing mutual fund holdings, you have to obtain a conversion request form from your Depository Participant (DP). After verification , the AMC or RTA will credit the mutual fund units into your demat account. It enables you to subscribe to mutual funds units through a stock broker, using the stock exchange platform.

It is to be noted that the demat holding will entail a charge. It may either be a flat fee based on a time period or may be linked to the Assets Under Management (AUM). The brokerage and demat transaction fees could vary with the broking firm, depository and DP. This apart, while trading in equity mutual funds through exchanges, you will have to pay the securities transaction tax (STT) as well.

IDFC MF launches Fixed Maturity Plans

IDFC Mutual Fund launches two Fixed Maturity Plans IDFC FMP Yearly Series 56 and IDFC FMP 2 Year Series 2.

IDFC FMP 2 Year Series 2

IDFC FMP Yearly Series 56 

What is the procedure to REDEEM / REPURCHASE Mutual Fund Units?

If the fund is open ended, the investor has to send the repurchase(redemption) requisition slip, duly completed and signed, to mutual fund or register (cams or karvy after checking which accept redemption of particular AMC(mutual fund). It is possible to lodge repurchase requests on the Internet also. The redemption can be done for all units, partial units, or for an amount.

Redemption proceeds can be either be directly credited to the investors account OR cheques are issued with the investors bank details printed on them mandatorily. This is to prevent fraudulent encashment of repurchase cheques.



Common Transaction Slip of Mutual Funds For  Redemption:  **Click image to enlarge

 In Karvy mfs website, we have option to create transaction slip by adding our investment detail.
 add details and Generate Transaction Slip 

Know your Credit Score Online by paying Rs. 450

Credit Information Bureau India Limited (Cibil) will now provide customers their credit reports and scores online. Individuals can now access these through a three-step process.

In the first step, customers would have to fill an online form,  with personal details like name, licence number and contact details. The second step would involve a payment of Rs 450, by way of debit, credit cards, net banking or cash cards.

The third step would involve authentication and this would pose five system-generated questions. To prove their authenticity, customers would have to answer at least three questions. The questions would be objective, and would also carry a few options. The questions would be very personal, and can be answered only by real customers. In case the customer fails to answer three questions correctly, he/she would have to go through the normal procedure of sending the hard copy of the documents to complete the know-your-client procedure.

The main advantage of obtaining the report from Cibil is that borrowers can find out in advance how good their score is. If the overall score is low the borrower can strive to improve his profile by paying all future dues on time and bringing down his overall borrowing. Also borrowers can take corrective action if there has been misrepresentation by lenders.

FAQ related to Mutual Fund Consolidated Account Statement!!!

Consolidated Account Statement is a single account statement that consolidates financial transactions in all folios of an investor across all schemes of all mutual funds.

The first CAS statement shall be issued by November 10th, 2011 covering transactions processed in October 2011.

FAQ related to CAS(Consolidated Account Statement)

Why is Consolidated Account statement (CAS) being issued now?
Consolidated Account Statement (CAS) is being issued consequent to amendment in SEBI Regulations and introduction of sub-regulation (4) under regulation 36, which interalia states
that.." the asset management company shall ensure that consolidated account statement for each calendar month is issued, on or before tenth day of succeeding month, detailing all the transactions and holding at the end of the month including transaction charges paid to the distributor, across all schemes of all mutual funds, to all the investors in whose folios transaction has taken place during that month.”

What will be the basis for consolidation of folios to be considered for CAS?
A PAN is considered valid if the PAN details are matched with income tax website or KYC is completed by CVL. So only those folios that have valid PANs for all the holders (including joint holders)and also the order of all joint holders is similar will be consolidated while issuing a consolidated account statement.

What happens if there are no financial transactions in a particular folio for the month?
CAS will include only the folios with financial transactions and hence these folios will not reflect in the statement.

What details of the investor will not be provided in CAS?
Apart from non financial transactions, sensitive information like registered bank account details, PAN and contact numbers will not be included in CAS. Mobile number will be provided however will be masked to maintain for confidentiality and privacy.

What will be the frequency of CAS?
CAS will be sent on or before the 10th calendar day of the following month for folios which have been transacted in the previous month. Currently CAS will be sent only via physical and not electronic mode.

How will CAS be sent? Will it be sent via email?
Currently CAS will be sent by regular post, even if an email id is registered in any or all folios. After few months, CAS may be sent via email using any of the email id registered in any of the folios.
Hence, strongly advise investors to verify their email ids (registered in each folio and also printed in CAS against each folio) and update a single email id across all folios.

Will the investor get any individual statement from the AMC?
Yes. Folios with email id will continue to get regular fund specific account statements electronically after each financial transaction within 5 working days. Folios with no email id will get a monthly CAS.

What if some of the folios are not reflected in monthly CAS? Will the investor get any individual statement from the AMC?
If investors find some of their folios are not reflected in CAS, they should check the following and act appropriately
a. Whether the folio has any financial transaction, as CAS includes only the folios with financial transactions?
b. If yes, whether the PAN of all the unit holders has been updated in the folio?
c. If no, they should get PAN of all the unit holders updated in the folio/s for future inclusion in CAS.
d. If PAN is already updated, investor should check with respective mutual fund or the registrar about the discrepancy.

In case of any discrepancy in folios related details in CAS, what should the investor do?
Investor should approach respective mutual fund or the registrar in case of any discrepancy in financial transactions, folio details printed in CAS or for any other queries.

Source: Amfi India

Gold Investment options in India!

Gold is the oldest currency in the world and is coveted across continents and cultures for a variety of reasons and is a remarkable hedge against inflation and hence tends to retain the purchasing power across time. It takes care of the 'preservation' part of any portfolio. Gold has been making waves since S&P downgraded credit rating of the United States from AAA to AA+.  As all other investment options are in deep stress, gold is attracting fresh investors, pushing the prices to new high, people are looking for gold for investment, however, buying gold in physical form like jewelery is a big problem due to impurity and resale value issues.
Experts suggest that at least 10% of your investible portfolio should be in gold. As it happens, for many Indian families gold often represents a large percentage of the family assets, given the socio-economic and cultural factors in play. Whatever be the reasons, an investment in gold is worth considering.

Here are some of methods which can be considered for investing in Gold.

1. Gold ETF 
The Gold Exchange Traded Funds is one of the best option to consider for investment in gold, for investors who want to invest in gold but without storing them. To start investing in Gold ETF all you need is "Demat Account". Your gold remains safe and you don’t have to go to the market to sell it. Gold ETFs give you tax benefits too. The best part is that you don’t need too much money for this.

Tax treatment for Gold ETF

The NAV is displayed periodically for the gold ETF just like mutual funds.
The advantage of Gold ETF is that you do not need to worry about the safety and storage as you would in case of physical gold.This is also very liquid compared to physical gold as the physical gold has to be taken to the buyer and sold.
Performance of Gold ETF Funds (click image to enlarge)

2. E-Gold
E-Gold is a new type of investment in Gold in India introduced by NATIONAL SPOT EXCHANGE LIMITED from April 2010 onwards.
Website link of NSEL:

This facility allows investors to buy gold in a dematerialized form.

The trading session is from 10am to 11.30pm and hence investors can do it at their convenience.

Investors can buy in the lot in one unit of e-Gold which is equivalent to one gm. of gold.

Investors can invest in Gold in small denominations and they can hold it in demat and electronic form. e-Gold is demat Gold units. 0ne unit of e-Gold is equal to 1gm of Gold. You can buy Gold in small quantities like 1gm.

Dematted Gold units can be converted to physical units if you want it. No need to get out from home if you have an Internet connection at your home to buy, sell e-Gold units.
All you need to do is to go to the NSEL website and find a list of the depositories to open a demat account for this. You need a separate demat account for gold E-gold investment. Once you have that, it becomes very easy to trade with gold online.
  Difference between cost structure when investing in Gold ETF or Egold

Taxes for Egold from NSEL in India

No Taxes like VAT and Excise taxes on buying and selling of e-Gold in electronic form. If you are taking delivery of e-Gold, then you have to pay the VAT @ 1% and other local taxes applicable.

Long Term and Short Term Gains

If e-gold is held for less than 36 months, then it is a short term asset. Short term capital gain tax is applicable as per slab rates
If e-Gold is held for than 36 months, then e-Gold is long term asset. Capital gain tax applicable at 10%.

Wealth Tax
Wealth tax- Wealth Tax for e-Gold in India is applicable at 1%, if the net wealth exceeds 30 lakhs.

3. Gold Funds or Gold Fund of Fund
Gold funds are like mutual funds run by a fund house. The best advantage in investing in gold fund is that investors do not need a demat account to invest in a gold fund. Investing in Gold Funds or Fund of Fund don't require demat account like in Gold ETF or Egold. You get all the same facilities from gold funds as you get from other gold investment options with demat account.
With low penetration of demat account in India, Gold fund is a good option for people who do not have a demat account. This gives you all the benefit of virtual gold such as no storage cost and safety concern. The NAV of the fund will be bench marked against the price of gold.

Gold Fund of fund invest in gold ETF fund where as gold funds invest in companies which invest in gold mining companies.

4. Gold deposit scheme
The gold deposit scheme announced by the Indian Finance Minister aims to draw out a part of country's vast gold holding in private hands and thus reducing India's dependence on importation of gold. In this scheme they issue interest bearing certificates against gold collected from households, temples and trusts.

Under this scheme, the owner of gold gets a certificate against delivery of the physical gold with the designated banks. Here you can tender gold in the form of gold bars, coins and even jewellery.

Change in Compulsory Re-investment Option to Dividend in SBI Magnum TaxGain

Earlier In SBI Magnum TaxGain Scheme when dividend was declared and when amount was less than Rs.250, the amount was re-invested in that scheme, but from November 21, 2011 SBI Mutual Fund has withdrawn the provision related to Compulsory Re-investment of dividend amount less than Rs. 250 from Magnum Tax Gain under a folio with immediate effect. So, investors opting for payout of dividend will be paid the dividend irrespective of the amount.

New Mutual Fund Offers Nov-Dec 2011

New Mutual Fund Offers Nov-Dec 2011
*Click image to enlarge

Section 80CCF: Infrastructure Bonds (IDFC Infrastructure Bonds 2011-12)


IDFC Infrastructure Bonds 2011-12 which will bring you an additional Tax Saving Benefit over and above limits prescribed under section 80C.
IDFC infrastructure bonds issue opens on 21 November 2011 and closes on 16 December 2011

Details of Bond returns


Terms of Tranche 1 Bonds(Click the image to view )


After the lock in period of five years, the bond will list on the NSE and BSE. Face value of one unit of the infrastructure bond is Rs5,000.
The maturity period is ten years for the bond with a buy back option after five years of the allotment of IDFC infrastructure bond. The lock in period of the bond is five years and after five years the investor can redeem the bond by using buy back option.

About Section 80CCF (Infrastructure Bonds)

Budget 2010 has introduced one more avenue for you to save tax Infrastructure Bonds.An investment upto a maximum of Rs. 20,000 in infrastructure bonds would be deductible from your taxable income. Thus, your taxable income would reduce by the investment you make in these infrastructure bonds, subject to an upper limit or ceiling of Rs. 20,000.

Please remember that this is over and above the Rs. 1,00,000 allowed under Section 80C.

The budget did not specify the exact bonds that qualify for investment under section 80 CCF – these would be notified by the government from time to time.

However, infrastructure bonds issued by both public sector / state owned companies as well as private sector companies would qualify for investment under this section. This is unlike the past trend – till now, only government entities were allowed to issue infrastructure bonds.

The money raised through these bonds would be primarily invested in infrastructure projects – building of roads, ports, airports, power plants, etc. These investments are of long term duration, and therefore, these bonds too are expected to have long tenures – 10 years or more.

The bonds are likely to carry an interest rate of 7.00 – 7.50%. Bonds issued by private companies are expected to offer a slightly higher interest rate of 8.00 – 8.50%.

Interest on PPF account has been raised to 8.6%

Interest on PPF account has been raised to 8.6% from 8%

There is some good news for investors who invest in public provident fund scheme. The government of India has increased interest rates on deposit schemes offered by post offices, like savings account, Monthly Income Scheme and Public Provident Fund.

While post office savings accounts (POSA) will fetch 4 per cent interest, up from 3.5 per cent, the Monthly Income Scheme (MIS) will earn an interest of 8.2% and the Public Provident Fund (PPF) will earn an interest of 8.6%, a government release said on November 11, 2011.

The new rates will be applicable from the date of notification which will be announced soon. (update: PPF will get higher return from December 1, 2011)

The annual investment ceiling in PPF savings has been increased to Rs 1,00,000 from the present limit of Rs 70,000. Commission on PPF deposit has been abolished.

Interest on loan from PPF raised to 2 % from 1 %.

Very soon common KYC can be used for different Financial Instruments!!

In a few months, you may be able to use your know-your-customer (KYC) registration with a mutual fund  to open a bank account or purchase insurance.

 Soon, you may be able to buy mutual fund units, shares, insurance policies, bank deposits and other such financial products with a single Know Your Customer (KYC) compliance.

Sebi has decided to move to a common standard for all financial products, in a few months we can able to see one registration for investing in any of financial instrument..

Now you will received a Single Account Statement (Consolidated) for all your investment in different mutual funds schemes....

A very great and Welcome news for all mutual funds investors, the Association of Mutual Funds in India (AMFI) today said the mutual fund industry has implemented the SEBI directive to issue consolidated accounts statement (CAS) to its investors. "Commencing of the transactions from the month of October 2011..

Consolidated Account Statement (CAS) will be issued as a monthly statement to investors, if there are any transactions during the month. The consolidation of folios is on the basis of PAN Number provided by the investors. This is in compliance with the amendment to the Securities and Exchange Board of India's (Sebi) regulations with regard to issuance of monthly CAS.

The CAS will be in addition to the individual account statements that investors get from the their mutual fund houses

Tax Implications on Mutual Fund Gains

If investment is in equity that is at least 65 per cent of its assets in equities:

  •  If you hold your investements for less than one year then pay short-term capital gains tax on your earnings @ 15.45%
  •  If you hold onto your investments for more than one year, then the long-term capital gains from them are tax-free in your hands.

 If you are investing in a debt fund:

  •   Short-term capital gains from it are added to your taxable income
  •  Long-term capital gains from debt funds, on investments held for more than one year, are subject to either 10 per cent flat capital gains tax or 20 per cent capital gains tax after indexation.

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