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.
