Mutual Fund Taxation-2020
Tax on income from regular dividend
In Union Budget 2020, Finance Ministry changed the tax policy in dividends. In prior policy, fund houses are responsible to pay Dividend Distribution Tax or DDT. But now investors need to pay taxes on the income from dividends. From 1st April 2020, the income from dividends will be added to your income and tax will depend on your income slabs.
Tax on income from Redemption
Since the capital gains" from redemption are taxed by the Income Tax authority, the payable taxes depends on its holding tenure. The holding period of an investment can be classified into two broad categories-
*The Capital gain/loss is the difference between the purchase price and selling price of mutual fund units.
In case of Equity Funds where holding tenure >=12 Months
In case of Equity Funds where holding tenure >=12 Months
In case of Equity Funds where holding tenure >=12 Months
In case of Equity Funds where holding tenure >=12 Months
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