Home   >>    Investment   >>    Mutual Fund

If the dividend receipts from mutual fund units are tax free under section 80 L, what will be the status of tax rebate due to the new budget provision whereby the MF will have to pay 10 per cent tax on total dividend distributed and tax has to be paid ind

As an investor, you don't pay any tax on your dividend corpus.

10 Dec 2008

The above statement is partially true. 10 per cent tax on distributed dividend will not be applicable for funds which have invested more than 65 per cent in equity. If the investment is into debt funds or less than 65% in equity, the 10% dividend distribution tax is levied. This tax is levied on the fund, not on the customer. So, as an investor, you don't pay any tax on your dividend corpus.



44.58 Lakh satisfied customers till Dec 2016
Get Loan Offers
Instant Home Loan Offers Instant Car Loan Offers Instant Personal Loan Offers
     
Instant Loan against Property Offers Instant Education Loan Offers Instant Credit Card Offers
Get Insurance Proposals
Instant Life Insurance Offers Instant Health Insurance Offers Instant Car Insurance Offers