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Mf- tax on distributable income?
Hi,
I was referring the tax reckoner on birlasunlife mutual funds website and it says "Tax on distributed income (payable by the scheme) rates Equity oriented schemes Nil". Does this mean that for equity oriented schemes, mutual fund will not deduct tax before payment of dividend?
Replies (3)
Yes, when paid to unit holders; as DDT liability is over asset company. For equity oriented funds it is nil, so no tax deducted before the distribution.
DDT is not paid incase of Money mkt & liquid schemes/ Debt Schemes?
It is mentioned "Tax on distributed income (payable by the scheme) rates , Money market and Liquid schemes , 25% + 12% Surcharge + 3% Cess= 28.84%"
Yes, The DDT is to be paid by asset company as applicable to the debt fund, but for unit holders it is taxfree (whatever be the scheme).
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