Quantum Mutual Fund :: Subbu's Solutions
Fund Specific Queries
Systematic Investment Plan (SIP)
In the Income Tax Act a new Section 10(34) was inserted some time back (if I am right, it was in the 2016 -2017 Union Budget) which says that dividend received in a financial year, from Indian companies in excess of Rs. Ten Lakhs will be taxed at the rate of 10%. Does this limit of Rs. Ten Lakhs include dividends from equity schemes of mutual funds or only from dividend from companies?
In the recent budget for 2018 -2019, Dividend Distribution Tax at the rate of 10% on dividends paid by equity schemes of mutual funds was introduced.
I would like to know if dividends received in a financial year from equity schemes of mutual funds are totally tax free in the hands of the investor without any upper limit and if not, what is the upper limit to be tax free?
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