TAX IMPLICATION Mutual Fund Investors 15 G 15

TAX IMPLICATION Ø Mutual Fund Investors Ø 15 G / 15 H Form Submission Ø Tax Slabs For Financial Year 2011 -12

51 TAX IMPLICATIONS FOR MUTUAL FUND INVESTORS W. E. F. JUNE 1, 2011 BY FINANCE ACT, 2011) AS PER INCOME TAX ACT, 1961 (AS AMENDED CAPITAL GAINS Equity Funds Other Funds Short Term Long Term TDS Resident Individual / HUF 15. 45% (15%+3% education cess) NIL Partnership Firms / LLP 15. 45% (15%+3% education cess) NIL Domestic Companies / 16. 2225% NIL Corporate (15%+5% surcharge +3% education cess) NRIs 15. 45% (15%+3% education cess) NIL DIVIDEND INCOME Short Term Long Term DIVIDEND DISTRIBUTION TAX At the hands of Investors Paid by the Funds TDS Equity Fund Other Funds Applicable income 10% without tax as per slab +3% indexation education cess (or 20% with indexation)+3% education cess NIL NIL 27. 0375% (25%+5%13. 51875% surcharge +3% (12. 5%+5% education cess) surcharge + 3% education cess) NIL Applicable tax rate 10% without (generally 30%) + indexation 3% education cess (or 20% with indexation)+3% education cess NIL NIL 32. 445% (30% +5% 32. 445% (30%+ surcharge + 3% 5% surcharge + education cess) 3% education cess) NIL Applicable tax rate 10% without (generally 30%) + indexation 5% surcharge+3% (or 20% with education cess indexation)+5% surcharge+3% education cess NIL NIL 32. 445% (30% +5% 32. 445% (30%+ surcharge + 3% 5% surcharge + education cess) 3% education cess) NIL NIL 27. 0375% (25%+5%13. 51875% surcharge +3% (12. 5%+5% education cess) surcharge + 3% education cess) STCG: Applicable income 10% without STCG: 30. 90% 15. 45% tax as per slab + indexation (30%+3% education (15% +3% 3% educatin (or 20% with cess) LTCG: education cess indexation)+3% 20. 60% with cess) indexation education cess LTCG: (20%+3% NIL education cess) Equity Liquid Funds / Fund Money Market Mutual Funds Other Funds Note: 1. Equity Funds' refer to 'equity oriented funds' as defined under the Income Tax Act, 1961 (i. e. investible funds of more than 65% of the total proceeds of the fund (annual average) are invested by way of equity shares of domestic companies). 2. The surcharge of 5% in case of Domestic Companies/Corporates will be applicable if the total taxable income exceeds Rs. 1 crore. Disclaimer: The above information is provided for general information only and is based on the relevant prevailing provisions of the Act to the best of our knowledge and belief, and may not be a complete presentation of every material fact regarding tax implications to unitholders. This is neither an offer for units nor an invitation to invest. While all efforts have been taken to ensure accuracy or correctness of the information contained herein, Franklin Templeton Mutual Fund, its Trustees, the AMC or any of its directors, employees or agents will not be liable for any inaccuracies or errors or omission therein or for any consequences arising out of any decisions based on the contents of this document. Further, in view of the individual nature of the implications, you are advised to consult your own tax and/or investment advisors with respect to the specific tax and other implications arising out of your participation in the funds.

52 15 G / 15 H FORM SUBMISSION I. Qualifying age for senior citizens has been reduced from 65 year to 60 year. II. A new category of “Very senior citizen” for resident individuals above 80 years of age has been introduced with slab rates. TAX PAYER AGE INCOME FORM TYPE Between 60 TO 80 2, 50, 000 15 H Very senior citizen More Then 80 5, 000 15 H Individual / Huf / Aop Less Then 60 1, 80, 000 15 G Woman Less Then 60 1, 90, 000 15 G Senior Citizen * Pan (Permanent Account Number) must be quoted in form 15 G/H, else the form is invalid * Rate of TDS wiuld be 20% as against 10% for cases where PAN is provided

INCOME TAX SLAB 2011 – 2012 For General Tax Payer Individual, AOPs, Trusts: • • TAX SLAB 0 - 1, 80, 000 1, 80, 001 - 5, 000 5, 001 - 8, 000 8, 001 above TAX RATE Nil 10% 20% 30% Women: • • Senior Citizen • • TAX SLAB 01, 90, 001 5, 001 8, 001 1, 90, 000 5, 000 8, 000 above TAX RATE Nil 10% 20% 30% Senior Citizen (Above 80 years (new category) ) (Age above 60 years and less then 80 years) TAX SLAB 0 - 2, 50, 000 2, 50, 001 - 5, 000 5, 001 - 800, 000 8, 000 - above 53 TAX RATE Nil 10% 20% 30% • • • TAX SLAB 0 - 5, 000 500, 001 - 8, 00, 000 - above TAX RATE Nil 10% 20% 30%

53 Thank You