Budget 2020 has abolished dividend distribution tax (DDT) on dividends declared by mutual funds. Instead, it has made dividends taxable in the hands of investors at their income tax slab rate. For instance, someone in the 30% slab will pay a tax at that rate, while someone in the 5% slab would pay tax at 5% on mutual fund dividends (debt or equity), ignoring surcharge and cess. This will apply from financial year 2020-21.
Health, life insurance premiums need a tax cut? GoM to meet on October 19
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