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
02 Jun 2011 
1 Reply 
1687 Views Asked by
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. (AI Summary)
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. (AI Summary)