Equity Funds
MF Schemes with > 65% of assets in shares of Indian listed Companies
- Dividend payouts of equity mutual funds are subject to 11.648% as Dividend Distribution Tax (DDT). However, dividends received is tax free in the hands of the investor.
- Additionally, there is a 0.001% Securities Transaction Tax (STT) on redemption of Equity Mutual Funds irrespective of the holding period.
Non-Equity Funds
All other schemes other than equity funds including debt funds, international fund of funds, gold funds, etc.
- Dividend payouts of non-equity mutual funds are subject to 29.12% Dividend Distribution Tax (DDT). However, dividend received is tax free in the hands of the investor. There is no TDS for domestic investors on redeeming any mutual fund. However, NRI investors are subject to TDS.
- There is no TDS for domestic investors on redeeming any mutual fund. However, NRI investors are subject to TDS.
Capital Gains Tax and Dividend Distribution Tax on Mutual Funds in India FY2018-19
