TDS on mutual fund investment: 5 things to know

1.Mutual fund dividends are subject to TDS at the rate of 7.5% for dividends in excess of Rs.5,000.

2.TDS is applicable on dividend payout, dividend reinvestment and dividend transfer plan.

3.Capital gains are not subject to TDS for domestic investors.

4.Capital gains for NRIs are subject to TDS of 30% for STCG and 20% with indexation for LTCG.

5.Forms 15G /15H, wherever applicable, can be submitted to avoid TDS.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

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