Whether mutual fund dividend income exempt U/S 94 (7)

This query is : Resolved

NAVIN KUMAR TULSYAN (Querist)
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18 December 2007 we invested in weekly dividend income plan mutual fund on 01-04-07 and redemed the amount on 30-06-2007. we earn dividend income during the period april to june. Whether the dividend received is exempt or not. please confirm.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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19 December 2007 Dividend income from mutual fund are exempt from incometax. Section 94(7) talks only about Where

any person buys or acquires any unit within a period of three months prior to the record date,such person sells or transfers such unit within a period of nine months after such date the dividend or income on such unit received or receivable by such person is exempt,then, the loss, if any, arising to him on account of such purchase and sale of unit, to the extent such loss does not exceed the amount of dividend or income received or receivable on such unit, shall be ignored for the purposes of computing his income chargeable to tax.