E-Paper
CBDT says 10% TDS applicable only on dividend payment by mutual funds
No tax shall be required to be deducted by the mutual fund on income which is in the nature of capital gains
Updated on: Feb 4, 2020, 21:02:13 IST
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CBDT has issued a clarification that the requirement of deducting TDSA at 10% will only apply for dividend payments by mutual funds.
No tax shall be required to be deducted by the mutual fund on income which is in the nature of capital gains.
The Finance Bill, 2020, has proposed the insertion of a new section — 194K — in the Income Tax Act, which states "any person responsible for paying income arising from units of mutual fund or a specified company must deduct tax at the rate of ten percent of such income".
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