Income From Mutual Fund Exempt Under Which Section

It must be noted that tax on dividends was taxable earlier.

Income from mutual fund exempt under which section. As per section 10 of the income tax act 1961 there are certain types of income which will be subjected to income tax within a financial year provided they meet certain guidelines and conditions. In case the short term capital gains were on account of listed equity shares which were sold on a stock exchange or equity oriented mutual fund then the provisions for tax calculations as per section 111a of the income tax act provide that 15 tax is payable by non residents on a flat basis without getting any benefit of the initial exemption. Types of exempt income. As per section 196 of income tax act 1961 no deduction of tax shall be made by any person from any sums payable to government i e.

The section 10 34 specifically deals with dividends received by investors on their holdings from indian companies making them tax free under the income tax act. Get the tax saving under section 80c using mutual funds. State and central government rbi. Corporation established under central act which is under any law for the time being in force exempt from income tax on its income or.

The mutual funds regularly pay out dividends to its investors. Exemption on dividend paid as per section 10 34 of income tax act any income received by an individual huf as dividend from an indian company is exempt from tax as the company declaring such dividend has already deducted dividend distribution tax before paying the dividend. 1 5 lakhs under section 80c. In addition section 10 35 talks about income received from investment in mutual funds also being exempt from taxes.

Mutual fund specified under section. Any income earned which is not subject to income tax is called exempt income.