The dividends from any mutual fund are tax-free, but debt funds levy a dividend distribution tax...
12-Mar-2013 •Research Desk
Is the dividend from mutual funds tax-free in the hands of an investor?
- RK Arya
Any dividend that an investor gets from any kind of a mutual fund is completely tax-free. Equity funds don't even levy any dividend distribution tax. However, there is a dividend distribution tax of 25 per cent levied on the dividends from a debt fund.