Follwoing will be the tax treatment for capital gain and dividend income on mutual fund investments:
Dividend Income:
Exempt in the hands of investors for both equity and debt schemes. However, AMC is liable to pay DDT in case debt schemes.
CAPITAL GAIN TAX FOR EQUITY SCHEMES: LTCG - Exempt subject to payment of STT STCG - Taxed at 15% plus cess/surcharge subject yo payment of STT.
CAPITAL GAIN TAX FOR DEBT SCHEMES: LTCG - Taxed @ 20% (with Indexation) or 10% (without Indexation) – Plus applicable surcharge and Cess. STCG - Taxed at the normal rate of tax as applicable to the assessee.
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