TAX IMPLICATION

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

2. 51 TAX IMPLICATIONS MUTUAL FUND INVESTORS W.E.F. JUNE 1, 2011 FOR AS PER INCOME TAX ACT, 1961 (AS AMENDED FINANCE ACT, 2011) BY CAPITAL GAINS DIVIDEND INCOME DIVIDEND DISTRIBUTION TAX Equity Funds Other Funds At the hands of Investors Paid by the Funds Short Term Long TDS Short Term Long Term TDS Equity Other Equity Liquid Funds / Other Term Fund Funds Fund Money Market Funds Mutual Funds Resident Individual / 15.45% NIL NIL Applicable income 10% without NIL NIL NIL NIL 27.0375% (25%+5% 13.51875% HUF (15%+3% education cess) tax as per slab +3% education cess indexation (or 20% with surcharge +3% education cess) (12.5%+5% surcharge + indexation)+3% education cess 3% education cess) Partnership Firms / LLP 15.45% NIL NIL Applicable tax rate 10% without NIL NIL NIL NIL 32.445% (30% +5% 32.445% (30%+ (15%+3% education cess) (generally 30%) + 3% education cess indexation (or 20% with surcharge + 3% education cess) 5% surcharge + 3% education indexation)+3% education cess cess) Domestic Companies / 16.2225% NIL NIL Applicable tax rate 10% without NIL NIL NIL NIL 32.445% (30% +5% 32.445% (30%+ Corporate (15%+5% surcharge +3% education cess) (generally 30%) + 5% surcharge+3% indexation (or 20% with surcharge + 3% education cess) 5% surcharge + 3% education education cess indexation)+5% surcharge+3% education cess cess) NRIs 15.45% NIL STCG: Applicable income 10% without STCG: 30.90% NIL NIL NIL 27.0375% (25%+5% 13.51875% (15%+3% education cess) 15.45% (15% +3% education tax as per slab + 3% educatin cess indexation (or 20% with indexation)+3% (30%+3% education cess) LTCG: 20.60% with surcharge +3% education cess) (12.5%+5% surcharge + 3% education cess) LTCG: NIL education cess indexation (20%+3% education cess) cess) 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.

3. 52 15G / 15H FORM SUBMISSION

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

5. 53 Thank You