Query Corner







How to access bank account online
June 24, 2013
I have savings account in state bank of travancore.what will i do for getting my account through online. - simitha sawad

Visit your bank branch, apply for Internet Banking facility.
Ask for Internet Banking Registration Form.
The Branch Officer will guide you through the registration process and will issue the Internet Banking Kit.






How to access TDS online
June 15, 2012

You can view the tax credit statement, that is Form 26AS:

1. Registering your PAN at http://www.incometaxindia.gov.in.
 For this you need to register your Pan details.After successful login and filling the verification details, you can view the tax credit details for any financial year. 
2.The same can also be accessed by registering the PAN with NSDL 
3. Also you can able to check Tax credit Statement in your net banking account.






.........................................................................................................................

Long term capital gain tax on gold mutual funds- NRI Investment

June 08, 2012

I shall appreciate if you could let me know what is long term capital gain tax on gold saving mutual fund. XXXXX MF have deducted 22% on the gold mutual fund I sold after 1 year of possession. Which method they should follow 11% or 20% with indexation. I had them for 1 year 12 months. What indexation they should apply? Hope to hear soon from you



After reading your query it seems you tax status is NRI as tax is deducted at source.

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.
 
The tax system for Gold Savings Fund or Gold ETF is similar to that of non-equity mutual funds like debt funds. When computing income tax, gold exchange traded funds are treated as debt funds.


How is TDS calculated for NRI Investment ?

 Long Term Capital Gain Tax on Gold mutual Funds for NRI 


TDS rate for Long Term NRI investor's under Non-Equity Scheme(s) = 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%
 
 TDS rate for Long Term NRI investor's under Equity Scheme(s) = NIL


.........................................................................................................................


Explain Procedure for change of address in KYC
May 15, 2012
 If you are KYC Compliant through CDSL Ventures Limited ( CVL ), please fill in KYC Details Change Form for Individual( For Change of Address ). You would also require to provide attested copy of the Identity proof and address proof as mentioned on the form. To check if you are KYC complaint visit http://www.cvlindia.com Inquiry on KYC. You need to submit the change of address form and the relevant document at any of Point of Services (POS)

.........................................................................................................................

How can i invest in Gold ETF?what is the procedure for that? 
April 27, 2012

A trading account and demat account are required to invest or trade in gold ETFs.
Gold ETF means Exchange Traded funds means which are purchase and sold through stock exchange.

.........................................................................................................................


Is it necessary to provide PAN Card Number for filling 15G form in Bank for avoiding TDS on Interest on FD's?


Yes PAN number details are compulsory when filling form 15G or form 15H.

 Under section 206AA

Section 206AA is related to PAN details are compulsory for TDS eligible payments
as per this wef 01.04.2010 "every person who receives income on which TDS is deductible shall furnish his Pan, falling which TDS shall be deducted at the rate
of 20% in case of Domestic deposits and 30.90% in case of NRO depositis"
Also note in absence of PAN details, Form 15G/H and other exemptions certificates will be invalid even if submitted and Penal TDS will be applicable.

.........................................................................................................................


Are Tax saving mutual funds banned? 

I want to invest in ELSS funds for tax benefit but not sure whether we can invest and get the tax benefit under section 80C of Income Tax, Please Clarify?? 


Yes, you can still invest in Tax Saving mutual funds as not yet banned as Direct Tax Code postponed for this financial year, so Now this option is still available for tax Saving.

You can save in Tax Saving mutual fund for this financial year 2012-13 as ELSS Funds (Equity Linked Savings Schemes) are available for tax benefit.

Refer this Update on ELSS Impact of Direct Tax Code on ELSS Funds

...................................................................................................................................

 

Tax Treatment of long term capital gain on equity mutual funds after direct tax code??

If you know that Direct Tax Code is postponed for this financial year 2012-13.

Now tax treatment of Long term capital Gains on Equity Mutual Funds


Long Term capital gains from equity mutual funds is tax free.

         


 ......................................................................................................................................................................

Is limit of increased PPF in 2011-12 applicable to sec 80c

Yes the increased limit of one lakh is applicable from December 2011.
(refer this: PPF will get higher rate of return from December 1, 2011)

March 27, 2012
Update related to interest rate in PPF
 Interest rate on PPF have been increased to 8.8 percent from 8.6 percent. The new rates would be remain effective from April 1,  2012 
The new rates would remain effective for the entire 2012-13 fiscal.


 ......................................................................................................................................................................

Switching dividend reinvestment to growth in tax saving fund??


If you opted for dividend reinvestment and now want to switch to Growth, you can't able to do so,But you can switch from Dividend Reinvestment to Dividend Payout in tax saving scheme(ELSS Fund) by filling switch request form.


 ......................................................................................................................................................................

Why sundaram Select Small Cap mutual fund units got redeemed and amount got credited to my bank account???


Sundaram Select Smallcap, was a 5-year close ended fund matures which matured on 22.02.2012 and now the scheme is closed and amount got credited to client's bank account registered in that scheme.


The Amc sent letter(switching transaction slip) to all units holder if they want they can switch to Sundaram Tax Saver, an open end ELSS Fund, and the last date to submit was Feb 16, 2012.

So, now the scheme got closed and amount got transfered to investors registered bank account.

 ......................................................................................................................................................................

Is their any tax rebate if we invest in Gold Savings Fund, If yes, under which section to claim gold savings fund under income tax act??

How Gold fund are treated from tax point of view???

What will be benefits to investor, if one opted for Gold Savings Fund (FOF)?? 




Gold Savings Fund currently don't offer any tax rebate or deduction under income tax act.

When computing income tax, gold ETFs are treated as debt funds, not equity.


On redemption, the units of gold ETFs held for more than a year qualify for a long-term capital gain tax of 11.33 per cent without indexation or 22.66 per cent with indexation.



If you have made a short-term gain, which applies when the holding is less than a year, the short-term capital gain will be clubbed with the income of the individual investor, to be taxed in line with the applicable tax slab of the investor.


So, the short-term capital gains will get added to your income and be taxed as per the income bracket you fall under.

 
 Tax Treatment of Gold Savings Fund:

 Long Term Capital Gain Tax of 10 % or 20 % with indexation will be applicable
 Short Term Capital Gains applicable as per tax slab for the investor
  
......................................................................................................................................................................

Do I need to submit the copy of the PAN card only along with a fresh / additional mutual fund investment, or can that be done at my convenience?

An investor must submit the PAN details along with all investments. However, if an investor has an existing folio with mutual fund (AMC), he/ she must get his/her PAN verified at the earliest, even if s/he wishes to transact at a later point of time.
......................................................................................................................................................................

How to change or update mobile number is mutual fund records???


Requests for a change in mobile number or e-mail ID may be given to the  mutual funds or the registrar directly and you don't have to submit such requests to CVL. 

Also many AMC's (mutual funds) accept the request on phone and verification is done by getting the call for verification and confirmation.

I remember my email address was wrongly mentioned in account statement and i called the customer care and asked for change, they asked some questions for verification and also told me i will get a verification and confirmation call to get that updated in mutual fund records.

Where as for change in address in mutual fund records, investors in mutual funds have to comply with the Know Your Customer (KYC) norms. This is a one-time exercise and the investors need to provide proof of identity and proof of residence (address) to CVL. The KYC database of investors is maintained by CVL and is provided to the mutual funds.
......................................................................................................................................................................

How to  get the ISIN Number of mutual fund scheme???


ISIN mean  International Security Identification Number.
Each mutual fund is assigned an ISIN ( International Security Identification Number). It can be obtained from amfi India.com, NSDL or CSDL and has to be included in the CRF/DRF.


.......................................................................................................................................................................

Can NRIs invest in Section 80CCF bonds?

The bonds that have been issued so far haven’t allowed investments from NRIs Investors,  Only Resident Indian Individuals (Major) and HUF can invest in these bonds. NRIs cannot apply in these bonds.

.......................................................................................................................................................................


 
Any queries about Mutual Funds, we are happy to help you.
For your queries write to us @:  mutualfunds.personalfin@gmail.com or post your query below.

2 comments:

  1. i have investment in minor s name in MF and bank acc is mine Can I take a redemption in my account

    ReplyDelete
    Replies
    1. Hi,

      Its better to open bank account in minor's name, update minor's bank details in mutual fund records and then put redemption, as banks nowadays don't accept such cheques where investment in made in minor's name and cheque is issued in guardian name, even clearly mentioned in redemption cheque issued in favor of Minor (name) represented by(guardian).

      Many of my clients contacted me as they don't get Direct Credit in bank account and bank doesn’t accept cheque in favor of minor - represented by guardian.

      So, they follow process of opening bank account and then can able to deposit cheque.

      Most important thing to note:

      If the bank account is held as 'Minor u/g Mother' (in mutual fund records), then the bank account will also need to specify the mother as the guardian (not the father).
      Means have same details in both the records bank as well as mutual fund records.

      Some bank's accepts cheque, but my suggestion would be first update minor's bank details and then do the redemption.

      Delete

Popular Posts (all time)

My Blog List