Equity mutual funds do not charge Dividend Distribution Tax
Do equity mutual funds charge Dividend Distribution Tax (DDT)?
-M P Bhatia
No, there is no dividend distribution tax applicable on equity-oriented mutual funds. These are the funds which have at least 65% of their assets invested in equities. However, in case of debt mutual funds, AMCs pay DDT at the rate of 28.33% (including surcharge and cess) of the amount of dividend.
This article was originally published on September 14, 2016.
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