Ch.8 · Dividend and STT Taxation · hard
What is the TDS threshold for IDCW from mutual funds?
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EXPLANATION
TDS on IDCW is triggered when the total IDCW paid by one mutual fund (AMC) to a single investor exceeds ₹5,000 in a financial year. Each AMC deducts TDS independently — a ₹4,000 IDCW from Fund House A and ₹4,000 from Fund House B would attract TDS from neither, even though total IDCW is ₹8,000. TDS is then at 10% on the entire amount once the threshold is crossed.
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