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Equity Funds don't Levy DDT

The dividends from any mutual fund are tax-free, but debt funds levy a dividend distribution tax...

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.



This article was originally published on March 12, 2013.

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