I had invested in LICMF FMP Series 43 (13 months) - Dividend Reinvestment option. On maturity, a certain amount was deducted under Dividend Distribution Tax (DDT) from my maturity proceeds. Is it valid?
- Bharat Desai
The dividends under FMPs are subject to DDT at 14.16 per cent (for individuals / HUFs), and hence this deduction in your case was valid. The dividends that are distributed on maturity of the scheme are, after deduction of the applicable tax, reinvested in the scheme, and then the proceeds are distributed to the unit holders.