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August 24, 2015

Taxablity on dividend Mututal Fund



For Individual and HUF

From
Dividend Exempt u/s
Long Term Capital Gain Exempt U/s
Short Term Capital Gain Exempt U/s
Company
10(34)
Dividend from company are lower as they are subject to DDT @ 15% u/s115-O
10(38)
@15%
Equity Oriented Mutual Fund (Min 65% investment in equity)
10(35)(a)
10(38)
@15%
Debt Oriented Mutual Fund
10(35)(a)
Dividend from Debt oriented Mutual Funds are lower as they are subject to DDT @ 28.33% u/s115R
@ 20%
Indexation benefit available
As per Tax slab
(For NRI it is 30%)

From a tax point of view, taking a dividend reinvestment option is no different from receiving the dividend in your bank account and then making a fresh investment of the same.

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