Can someone please confirm whether following fund dividend is taxable or not? Dividend is reinvested in units daily.
LIC MF Banking & PSU Debt - Direct Plan - Dividend - Daily
Thanks
Rajesh Jadhav
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Taxation on Debt fund - Direct Plan - Dividend - Daily
Replies (5)
Quick Summary
Dividends from debt mutual funds are tax free in the hands of investors but they are liable for a dividend distribution tax of 29.12 %
OK sir, thank you for your reply , so in this fund, while they credit daily units to my account equivalent to dividend is not taxable while redeeming.
Thanks
The above reply is in respect of Dividend Income either actually received by you or it is re-invested into units as per your chosen option.
The new units allowed are nothing but your fresh investment into units.
So at the time of redemption , whether profit or loss, it is taxable either as long term capital gain/loss or short term capital gain /loss.
Dividend and Redemption both are independent matters.
The new units allowed are nothing but your fresh investment into units.
So at the time of redemption , whether profit or loss, it is taxable either as long term capital gain/loss or short term capital gain /loss.
Dividend and Redemption both are independent matters.
OK sir, thank you
How 29.13%
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