The dividends from liquid funds attract dividend distribution tax which is deducted by the fund companies
11-Sep-2015 •Research Desk
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.
