Ch.9 · KYC and Folio Management · hard
An investor redeems units from an equity fund and opts for a dividend payout. Which of the following is TRUE about tax treatment at this point?
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EXPLANATION
Post 2020 tax changes, dividends are taxable in the investor's hands as per their income slab rate. Redemption also triggers capital gains — STCG at 20% or LTCG at 12.5% (above ₹1.25 lakh exemption) depending on holding period.
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