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Ramalingam Kalirajan  |60 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2023

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jul 11, 2023Translate
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My father passed away last year.He had way back in 2000 invested money in mutual funds. After his death i got the mutual funds transferred in my name. there are few mutual funds for which i am receiving payout which is credited to my saving account and i will add this amount to my total income and pay relevant income tax. There are few mutual funds where as i understand the dividend received is converted into units and added to the existing units is this taxable or i have to pay tax only when i redeem the mutual fund. IF it is to taxed than how do i find the dividend received for each mutual fund . Thanking you in advance

Ans: If it is growth fund, and the value is appreciating, then no need to pay tax now. Taxability will arise only on withdrawal.

If the fund is in the dividend reinvestment option, then for the dividends reinvested also, you need to pay tax.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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