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As per DTC, from 1st April 2012, will the dividend from equity mutual funds be taxed in the hand’s of the tax payer. Also, what about the investments done in mutual funds before 1st April 2012, will their dividend also be taxed. If yes, what is the rate of taxation? Many thanks
With effect from April,2012, dividends received on equity mutual funds is taxed at the rate of 5% on dividend paid in the hands of the investors. As long as there is no notification/circular with respect to Tax on dividends from equity mutual funds, it is assumed that the Tax Implication would be prospective which means the new tax rate would be applicable only on Equity mutual funds bought after April,2012.
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