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dividend received on MF

Siddharth Parmar (ipcc student) (61 Points)

30 July 2019

dividend rs. 30 lacs received on mutual fund , taxability . explain with explanation ..

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4 Replies

Kapadia Pravin (17259 Points)
Replied 30 July 2019

Exempt u/s 10(35)

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Siddharth Parmar (ipcc student) (61 Points)
Replied 30 July 2019

fully exempt ??

Kapadia Pravin (17259 Points)
Replied 30 July 2019

Yes fully exempt

Suresh Thiyagarajan (Student) (3986 Points)
Replied 30 July 2019

1. As per sec 10(35), dividend received from MF will be exempt from payment of tax.
2. There is a wide confusion about whether DDT will be applicable to companies who are paying a dividend. It shall be applicable but the same is not covered u/s 115-O and sec 115BBD provision will not be applicable for them.
3. In your case dividend of Rs. 30 lakhs received from MF will be fully exempt from tax u/s 10(35).
Please correct me if the above solution has an alternative view.