Mutual fund is not required to pay tax on income distributed to its unit holders on or after 1-4-2020
Such dividend distribution will be taxable in the hands of Unitholders.
Under new section 194K , there will be TDS on such dividend @ 10% (above threshold limit of Rs 5000/-)
New section says that Any person responsible for paying to a resident any income. It is not restricted to dividend distribution. Will it not include capital appreciation also.
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