3.11.1 Set up IRRF Preferences for a Unit Holder

This topic provides information on set up IRRF preferences for a unit holder.

IRRF is equivalent of the income tax, and is paid as the percentage of the profit made post the application of IOF which is a tax paid for the profit made by the Unitholder, if a Unitholder redeems the funds within a stipulated time. Unit Holder IRRF preferences are applicable only for pension funds.

IRRF is usually paid on the last working day of May and November. Apart from paying IRRF on these fixed dates, IRRF is also paid during redemption. Any advance IRRF paid by the customer are adjusted while calculating the IRRF during redemption.

You can opt for optional IRRF load only within the stipulated number of days as specified in PARAMS Maintenance. If the IRRF preferences have not been setup from the date of first subscription for a given combination of unit holder and fund within the stipulated number of days, default IRRF will be considered. Whenever judicial blocking or redemption occurs before the preferences have been setup in the system, default IRRF load will be considered for IRRF calculation and you will not be allowed to maintain the preferences then on.

Note:

This feature is only available if your installation has requested for it.