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MIP Dividends

Tax is deducted by funds and therefore, it is not going to be charged in the hands of investors

Will dividends be taxable, or tax free, on the following funds: Reliance monthly income plan (MIP) and HDFC MIP?

For income tax purposes, MIPs are treated as debt funds, which carry a dividend tax of 14.16 per cent. But it is tax-free in the hands of investors since fund houses deduct the tax at source and pay it to tax department.

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