Taxablity of Income from Mutual Fund

[JOHN SHANNEL]

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

 

[sanjeev bajaj]

Dear John

Dividend recd. from mutual fund is not taxable as per clause 35 of sectuin 10 of IT ACT if mutual fund is registered with SEBI as per clause 23D of Section 10.

Clause 35 of Section 10 states any income from specified mutual fund.

If you see the definition of income it includes dividend.

Regards

SANJEEV BAJAJ

AI Summary

Taxability of mutual fund dividends: dividends from SEBI registered specified mutual funds are not taxable for recipients. Dividend income distributed by a mutual fund registered with SEBI is treated as income of a specified mutual fund and, under the cited exemption, such dividend receipts are not subject to tax at the recipient level; the definition of income includes dividends, but the exemption for specified mutual funds removes taxability for investors when the fund meets the registration condition.