Q: Returns and Dividend of MIP are Taxable or not? please advice.
Answer: MIPs are hybrid investment avenues that invest a minor portion of their portfolio (around 15 %-25 %) in equities and the balance in debt and money market instruments (i.e. bonds, certificates etc) to provide a monthly (or periodic) income to investors.
Dividends declared under MIPs are tax-free. Hence MIPs are better than pure debt instruments like FDs when it comes to Tax smartness.
From Your Expert @ InvestmentYogi