Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Salaried Individual Queries Tax on Dividends Received from Mutual Funds

T S Khurana |436 Answers |Ask -Follow

Tax Expert - Answered on Aug 06, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by Narender on Aug 01, 2024Hindi

Listen

Money

Hi Sir, I am a salaried class person, aged 57 years. I am paying Income Tax regularly since last 20 years. My question is why am i liable to pay tax on dividend received on mutual funds as i am investing my hard earned money after paying due taxes (Income Tax). The profit I got is from the money that saved after paying tax.

Ans: Income Tax is paid on the Income earned, may be from any source. If we go after your argument, then why business men should pay tax on their business income.
Dividend is your additional income from investments, hence it shall be taxed.
Most welcome for any further clarifications. Thanks.

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.

MoneyReply

You may like to see similar questions and answers below

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Nov 20, 2019

Question by Rajagopal - Nov 20, 2019Hindi

Listen

Money

Here are my questions: (1) From AY 2018/19 dividends from equity oriented mf are subject to Dividend Distribution Tax @11.648 per cent and this has hugely affected the return on mf. Investors whose gross total income is within exempt limit are forced to pay tax indirectly by way of DDT. Incomes such as interest are not subjected to this kind of levy. DDT is harsh and hurting investors. Better to tax it as income from other sources and also capital gains at slab rates. Whether MF companies have taken this matter with finance ministry? There is no level playing field between growth and dividend funds and DDT has put growth funds tax advantage.

Ans: No Comments

Anil Rego |388 Answers |Ask -Follow

Financial Planner - Answered on Aug 27, 2021

Question by Srinivasan - Aug 27, 2021Hindi

Listen

Money

The tax authorities deducted tax on dividend from mutual funds. I want to know which form should be used for filing (ITR1 or ITR2). I would also like to know the exemption limit for dividend from mutual funds. Can we file with ITR1 under income from other sources and show the dividend amount? Please clarify.

Ans: Assuming that you have salary income and dividend income, you can use ITR 1 for filing under income from other sources.

Since dividends have now become taxable in the hands of the investor, the earlier exemption limit is longer available.

Ulhas Joshi | Answer |Ask -Follow

Mutual Fund Expert - Answered on Jul 12, 2023

Asked by Anonymous - Jul 11, 2023Hindi

Listen

Money

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/profit 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.

Ans: Hello and thank you for writing to me. Please accept my condolences on the passing of your Father.

The units on which are you are receiving payouts will be under the IDCW Payout Option, previously known as the dividend payout option.

The IDCW Reinvestment option is where you the AMC declares a payout and then uses that amount to allocate additional units to you at the then prevailing NAV. Under the IDCW payout option, as you a payout is declared, you need to pay taxes on it despite not having received the funds.

It is best that you consult a tax advisor to help you and clear all doubts.

Ramalingam Kalirajan |8192 Answers |Ask -Follow

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

Asked by Anonymous - Jul 11, 2023Hindi

Listen

Money

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.

Latest Questions

Dr Nagarajan Jsk |310 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Apr 06, 2025

Question by Dont - Mar 20, 2025Hindi

Listen

Career

Hello sir im a 12th passout in 2024 feb Maharashtra board, but i will not satisfied with my marks in 2024 i give improvement exam in 2025 feb but i still not agreed i want to give improvement exam in jully 2025 attempt i have options or not sir plese reply me

Ans: The board did not specify anything related to the number of reappearances. However, before reappearing for the exam, you should be adequately prepared to avoid wasting time.

POOCHO. LIFE CHANGE KARO!

Dr Nagarajan Jsk |310 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Apr 06, 2025

Asked by Anonymous - Mar 09, 2025Hindi

Listen

Career

I am a 12th student now in state board of tamil Nadu and I am a government school student what is the minimum requirement for me to join mbbs in AFMC medical College

Ans: The following requirements are mandatory for admission to AFMC.

Age: 17-24yrs
Academic qualitfication: FIRST ATTEMPT with English, Physics, Chemistry and Biology/ Bio-technology taken simultaneously and securing not less than 60% of the aggregate marks in these three science subjects taken together and not less than 50% marks in English and 50% marks in each of the science subjects. They must have also passed an examination in Mathematics of the tenth standard.
Candidates seeking admission for MBBS course at AFMC Pune will have to mandatorily qualify the NEET UG 2024 Examination conducted by National Testing Agency (NTA). 11. Eligible candidates who are interested to join AFMC, Pune to pursue the MBBS course will have to mandatorily register and apply for AFMC, Pune on DGHS

The shortlisted candidates will be called for screening which comprises of Test of English Language and Reasoning (ToELR), Psychological Assessment Test (PAT), Interview and Medical Examination at AFMC, Pune.

ToELR & PAT - Test of English Language and Reasoning (ToELR) in the form of Computer Based Test (CBT) and also Psychological Assessment Test (PAT) to be conducted at AFMC, Pune only for candidates shortlisted for interview. (t) Written Examination Score - Score obtained in NEET (UG) 2024 (720 marks) added to ToELR Score (80 marks) divided by 4 to get a score out of 200. (u) Final Score - Written examination score (200 marks) + Interview marks (50 marks).

MEDICAL FITNESS: MANDATORY AS PER AFMC

ALL THE BEST

POOCHO. LIFE CHANGE KARO!

Radheshyam Zanwar |1519 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Apr 06, 2025

Asked by Anonymous - Apr 06, 2025

Career

Hiw is nit delhifir cs

Ans: Hello Dear.
It is good and has a good track record of placement. Thanks

Dr Nagarajan Jsk |310 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Apr 06, 2025

Asked by Anonymous - Apr 04, 2025Hindi

Listen

Career

In my 10th marksheet my father's name is "Binay singh" and In other Government documents like aadhar card,pan card,Ration card my father's name is "Binay kumar singh" And while filling the application form I filled my father's name according to Government document "Binay kumar singh" . Please guide me what should I do now. I made an affidivat From First class magistrate regarding the name "Binay kumar singh and Binay Singh" Both are same person Will there be any problem during counselling if yes please guide me.

Ans: Hi,
The 10th marks sheet is also a government
No need to worry since your dad is not going to write the exam. So don’t panic. Prepare for the exam.
All the best.

Dr Nagarajan Jsk |310 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Apr 06, 2025

Question by Shahnavaj - Apr 05, 2025Hindi

Listen

Career

I completed my 12th with pcm in 1996. Now i want to complete 12th with biology to apply in neet.please advise me if it is possible or not? Any other sllution?

Ans: Hi Shahnavaj, please share why you want to appear for NEET and what you are currently doing to give you advice.

POOCHO. LIFE CHANGE KARO!

Dr Dipankar Dutta |1093 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 05, 2025

Asked by Anonymous - Mar 20, 2025Hindi

Listen

Career

I am confused between pursuing between bsc microbiology and bsc chemistry which have better future in india

Ans: BSc chemistry definitely

Prof Suvasish Mukhopadhyay |552 Answers |Ask -Follow

Career Counsellor - Answered on Apr 05, 2025

Asked by Anonymous - Apr 04, 2025Hindi

Listen

Career

Sir I Have scored 85 percentile in jee mains ,so should I take drop or should get myself enrolled in some other institutes like IISER OR BHU for example

Ans: You should not take drop.

Prof Suvasish Mukhopadhyay |552 Answers |Ask -Follow

Career Counsellor - Answered on Apr 05, 2025

Asked by Anonymous - Mar 21, 2025Hindi

Listen

Career

I got 96.5 percentile in JEE Mains Session 1 (SC). West Bengal home state. I have a interest in sports and would like to go with some electronics related branch. Which NIT & branch combination would be the best choice for me. I was thinking about NITR EIE

Ans: Go for NIT -Durgapur.

Prof Suvasish Mukhopadhyay |552 Answers |Ask -Follow

Career Counsellor - Answered on Apr 05, 2025

Question by Nsms - Mar 21, 2025Hindi

Listen

Career

My son got 92.2%ile in jee mains. General category and up domicile. Can he get into any IIIT ? If yes please mention college name and branch too if possible.

Ans: College name I won't mention,but I think he will certainly get low ranked IIIT

Prof Suvasish Mukhopadhyay |552 Answers |Ask -Follow

Career Counsellor - Answered on Apr 05, 2025

Asked by Anonymous - Mar 20, 2025Hindi

Listen

Career

I am a second-year mechanical engineering student with an interest in AI. I want to understand the scope of AI and the possible future in India. Also, how do you think Amazon layoffs will affect the nature of jobs available in India? What kind of additional courses I can take up along with my engineering studies to be able to get a good job with a good starting salary?

Ans: Go for MS from USA in AI.Then you can think of a good job of AI.Your GRE SCORE must be very good.Why have you opted for Mechanical?

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x