According to AMFI data 329 distributors earned Rs2,572 crore as commission from selling mutual fund schemes. Citibank leads the chart with Rs181.16 crore, while SBI earned just Rs29 crore as commission
Income earned by distributors from selling mutual fund (MF) schemes surged 9% to a staggering Rs2,572 crore in 2013-14, driven by improved market conditions, even as their number fell during the year.
According to latest data available with Association of Mutual Funds in India (AMFI), the total income earned by 329 distributors stood at Rs2,572 crore. Citibank topped the chart with highest commissions.
This was 9% higher than the total commission of Rs2,367 crore given by the fund houses to their 332 distributors during the fiscal year 2012-13.
Public sector banks, meanwhile, are far behind their private peers when it comes to selling MF products.
Interestingly, the top 10 distributors contributed about 47% of the overall commissioned earned in the past financial year. There were seven banks among the top-ten mutual fund distributors.
Market participants attributed the spike in commission to better capital market conditions in the past fiscal coupled with measures taken by SEBI for the benefit of the sector.
However, the year ahead is going to be tricky for the MF industry as the recent budget proposals may dealt a big blow to the sector, mainly on debt and gold oriented funds.
The Union Budget 2014-15 increased long-term capital gains tax on debt funds to 20% from 10%, and changed the definition of long-term for debt funds to 36 months from 12 months.
As per the latest disclosure of commission and expenses paid by various fund houses to their distributors, Citibank led the list earning a commission of Rs181.16 crore followed by HDFC Bank (Rs158.51 crore), NJ IndiaInvest (Rs149 crore) IIFL Wealth Management (Rs130 crore) and SPA Capital Services (Rs121 crore).
Besides, other among the top-ten commission earners - ICICI Bank (Rs118 crore), Kotak Mahindra Bank (Rs99 crore), Axis Bank (Rs94 crore), Standard Chartered Bank (Rs89 crore)and HSBC Bank (Rs83 crore).
As per AMFI data, State Bank of India (SBI), the largest lender, could manage to get a commission payment of Rs29 crore, followed by IDBI Bank (Rs9 crore), Union Bank of India (Rs6 crore), Canara Bank (Rs5 crore) and Bank of Baroda (Rs4 crore.)
AMFI discloses commissions of those MF distributors who meet any of the four criteria -- presence in at least 20 locations or manage assets of at least Rs100 crore, or should have received commissions worth a minimum of Rs1 crore from all MFs collectively, or received above Rs50 lakh from one fund house.
CA Vimal Punmiya, who is member of the Committee, has promised to raise the grievances and suggestions from taxpayers on TDS during the meeting on 22nd July
In a proactive initiative, Chartered Account (CA) Vimal Punmiya, a member of the Standing Committee on tax deducted at source (TDS) is seeking people's feedback, suggestions and grievances that he has promised to raise during the Committee meeting on 22 July 2014.
TDS has been a pain in the neck for all middle class assesses and despite repeated representations, the government has not agreed to do away with the TDS, particularly in respect of bank deposits. As per the amendment to the Finance Act, senior citizens were not required to pay any advance tax before the close of the year, but need to pay appropriate tax, if liable, before filing the tax return. But this was only a half-hearted measure, as the government had not waived TDS even for senior citizens even though they are not required to pay advance tax, thereby putting them into great inconvenience. Moreover, the I-T department has been most reluctant to reimburse the TDS, claims several senior citizens.
Last month, even the Tax Administrative Reforms Commission (TARC) in its first report has addressed grievances faced by the tax payers in claiming credit for TDS. The TARC has suggested introduction of a passbook scheme for TDS, albeit with built in safeguards. It also suggested a new initiative, that would enable a taxpayer to make corrections in the TDS statement filed by the deductor like a bank or an employer.
If you have any issues with your TDS deductions, then you can send details at [email protected] , which Moneylife Foundation will forward to Mr Punmiya to take up during the meeting.
The Committee, appointed by Commissioner of Income Tax, is meeting with a view to make the administration of TDS more effective, transparent, fair and tax payer friendly.
RBI signed an MoU for supervisory cooperation and exchange of supervisory information with the Hong Kong Monetary Authority
The Reserve Bank of India (RBI) has signed a memorandum of understanding (MoU) with the Monetary Authority of Hong Kong for exchange of supervisory information.
“The RBI on Thursday signed an MoU for supervisory cooperation and exchange of supervisory information with the Monetary Authority, Hong Kong,” the central bank said in a release.
The MoU was signed by Arthur Yuen, deputy chief executive for banking, at the Monetary Authority, Hong Kong and Harun R Khan, deputy governor of RBI.
The signing ceremony was held at the Monetary Authority office in Hong Kong.
RBI has been signing the MoU and Letters for Supervisory Cooperation with supervisors of other countries to promote greater co-operation, including sharing of information about the supervised entities among the national authorities.
With this, the central bank has signed MoUs with 21 supervisors for supervisory co-operation.