Mutual Funds Under Income Tax
This ddt is calculated at 10 plus surcharge and cess.
Mutual funds under income tax. You can claim a deduction up to rupees 1 50 000 only under section 80c. In general dividend income is taxed as ordinary income. Mutual funds that fall under the category of pension and elss will help you with tax savings under section 80c of the income tax act. Hence as it stands ddt has been abolished under the new tax regime.
Tax benefit of mutual funds. Whenever you are to file your income tax return then it is advised that you discuss with an income tax consultant first. 1 5 lakh per annum under section 80c of the income tax act. And now the u turn.
In the new structure that starts for 1 april 2020 the ddt has been abolished and the dividend is now taxable at the hands of the shareholder or mutual fund unit holders. An elss comes with a lock in period of 3 years which means an investment made in it cannot be withdrawn before 3 years.