[Resolved]  Kotak Mutual Fund — FMP taxation error not being resolved

Address:

Mumbai City, Maharashtra

I had invested Rs20 lakhs into an FMP (Fixed Maturity Plan) Kotak Series 86, Growth, INF174K01II9 on 24/04/2012 through my HSBC NRE account[protected] for a period of 370 days.

I have received a maturity amount of Rs21,53,462.81 on the 29/04/2013. Kotak has deducted a TDS of Rs39,820 (22% tax) which has been done erroneously. Clearly capital gains tax laws in India state that tax applied should be lower of 11% or 22% adjusted for indexation. Kotak admits that they did not get the inflation figures from CII which are to be used for indexation. I find this surprising considering that the other FMP maturities that I have received have this adjustment made. Why should a figure avalable from a government body not be available to Kotak.

My correspondence with Kotak has been futile in securing a refund from the company for this erroneous tax deduction with Kotak advising me to claim tax refund as a part of the filing. I am not sure why I should get into the hassle of getting a refund for an error being committed by Kotak.

The company's vindictiveness and non chalance in dealing with the situation has been very surprising, as has been their dismissiveness towards refunding the Rs39,820. I would request the help of this forum in highlighting such practices of AMCs like Kotak to other investors.

Thanks.

Best regards.
Vaibhav

[protected][protected]
Vaibhav Dhasmana
+[protected]
vaibhav.[protected]@gmail.com