Section 194K: TDS Limit on MF Income Increased from 1st April 25



Quick Summary
Section 194K of the Income Tax Act governs Tax Deducted at Source (TDS) on mutual fund income, specifically dividend income. Currently, a 10% TDS is applied if the annual mutual fund income exceeds ₹5,000. The government has proposed an amendment, effective April 1, 2025, to increase this threshold, offering relief to small investors. It's important to note that this section only applies to dividend income and not to capital gains, which are taxed separately.

Meaning of Section 194K Section 194K of the Income Tax Act pertains to the deduction of Tax Deducted at Source (TDS) on income from mutual funds. This section was introduced to ensure tax compliance and prevent tax evasion on investment income. It applies to any person making payments in the
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Hi Everyone, Hope you all are doing good! I am a CA Final Student and currently undergoing my CA Articleship.

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