TaxTMI 
TaxTMI 
TaxTMI 
We Invested in Mutual Fund (Debt Scheme) last year. For the investments we receive Dividend after deducting Dividend Distribution Tax. Is it taxable. Please also mention the section in both case.
Thank You.
John Shannel
Taxablity of Income from Mutual Fund
JOHN SHANNEL
Dividends from SEBI-registered mutual funds are tax-exempt under Clause 35 of Section 10 of the Income Tax Act. A query was raised regarding the taxability of dividends received from a mutual fund (debt scheme) after the deduction of Dividend Distribution Tax. The response clarified that dividends from mutual funds are not taxable under Clause 35 of Section 10 of the Income Tax Act, provided the mutual fund is registered with SEBI according to Clause 23D of Section 10. The definition of income includes dividends, but these specific dividends are exempt from tax under the mentioned provisions. (AI Summary)