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

2. T AX I MPLICATIONS FOR M UTUAL F UND I NVESTORS W. E. F. J UNE 1, 2011 ASASPER I NCOME T AX A CT, 1961 (A S AMENDED BY F INANCE A CT, 2011) CAPITAL GAINSDIVIDEND INCOMEDIVIDEND DISTRIBUTION TAX Equity FundsOther FundsAt the hands of InvestorsPaid by the Funds Short TermLongTDSShort TermLong TermTDSEquityOtherEquityLiquid Funds /Other TermFundFundsFundMoney MarketFunds Mutual Funds Resident Individual /15.45%NIL Applicable income10% withoutNIL 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 / LLP15.45%NIL Applicable tax rate10% withoutNIL 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 cess)indexation)+3% education cess Domestic Companies /16.2225%NIL Applicable tax rate10% withoutNIL 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 cesscess)indexation)+5% surcharge+3% education cess NRIs15.45%NILSTCG:Applicable income10% withoutSTCG: 30.90%NIL 27.0375% (25%+5%13.51875% (15%+3% education cess) surcharge +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 (12.5%+5% surcharge + 3% education education cesscess) LTCG: NIL indexation (20%+3% education 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. 51

3. TAX PAYERAGEINCOMEFORM TYPE Senior CitizenBetween 60 TO 802,50,00015 H Very senior citizenMore Then 805,00,00015 H Individual / Huf / Aop Less Then 601,80,00015 G WomanLess Then 601,90,00015 G 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. 15G / 15H FORM SUBMISSION * Pan (Permanent Account Number) must be quoted in form 15G/H, else the form is invalid * Rate of TDS wiuld be 20% as against 10% for cases where PAN is provided 52

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

5. Thank You 53