TDS on MF Dividend (New Section 194K)

Following changes effective from 1st April 2020, mutual funds no longer pay tax on dividends distributed to unit holders. Instead, this dividend income is now taxable in the hands of the unit holders. A new Section 194K introduces a 10% TDS (Tax Deducted at Source) on these dividends if the amount exceeds Rs 5,000. The section's wording suggests it might apply to more than just dividends, potentially including capital appreciation, though clarification is pending.