Lok Sabha
Unstarred Question No.
1979
To be Answered on Friday
4th August, 2000
Monthly income scheme of
UTI
Question
1979. Shri Kirit Somaiya:
Will the Minister of Finance
be pleased to state :
- Whether Unit Trust of India has
approached his Ministry to transfer the tax burden
on investors on their monthly scheme;
- If so, whether SEBI has refused
to give permission;
- If so, the reasons therefor;
- Whether due to the new provision
in the budget, UTI will have to sacrifice Rs.
256 crores for taxation for such monthly income
scheme;
- If so, whether the small investors
and investors association have opposed the idea
of UTI to pass of this additional 11% tax burden
on small investors; and
- If so, the facts thereof and reaction
of the Government thereto;
Answer
Minister of State in the
Ministry of finance (Shri Balasaheb
Vikhe Patil)
- The Unit Trust of India (UTI),
had requested the Ministry of Finance to consider
the following; to apply the new income distribution
tax under the Finance Bill 2000 prospectively
to schemes to be launched after 30.6.2000; waiver
of the income distribution tax clause for its
Monthly Income Plans (MIPs) launched before 30th
June 1999; and to reduce the income distribution
tax rate from 20% to the previous year's level
of 10% for all schemes launched after 30.6.99
and upto 30.6.2000. The Government has not accepted
UTI's suggestions.
- The total tax incidence of UTI's
assured MIPs, on account of the income distribution
tax, is approximately Rs. 370.49 crores during
the year 2000-2001. According to UTI, small investors
desire to get the returns assured by UTI.
