The dividends from liquid funds attract dividend distribution tax which is deducted by the fund companies
Can you please confirm whether dividends (Monthly) earned from liquid fund (e.g Escorts Liquid Fund) is tax free in the hands of investors?
- Rajeev Agarwal
Dividends from liquid schemes are tax free in the hands of investors. However, mutual fund companies pay dividend distribution tax on dividend declared on behalf of the investor.
This article was originally published on September 11, 2015.
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