1. Can we call the earnings from mutual fund as interest?
2. U/s 10(23D) any income of mutual fund is exempt. Then who will pay income tax on interest received by them as any income from mutual fund is exempt under the hands of the receiver u/s 10 (35)?
1. No.
2. DDT is paid for dividend payment. Also there is capital gains tax ST or LT for the schemes when redeemed, but based on 1/3 years holding its Long term, otherwise ST. Only for equity based MF schemes its 1 year holding period for LT and the gain is tax-exempt.
CAclubindia
