If you are earning more than 10 Lac then 10% DDT is to be paid by Fund house on the whole sum and 10% additionally by you on the amount exceeding 10Lac.
If Total alotted dividend to you is 12 Lac so-
10%*12Lac= 1.2 Lac is paid by Fund house
(you get 10.8 Lac)
10%*80000= 8000 is to be paid by you
No. Dividends from shares and mutual funds are taxable at slab rates now. This applies even if the dividends are automatically reinvested by the mutual fund (dividend reinvest option): we are required to pay tax on the amount of dividend, even if it was not directly received in our bank accounts.
After Budget 2020, the DDT (Dividend Distribution Tax) was abolished, making dividends taxable in the hands of the shareholders from FY 2020-21 onwards. If the dividend is above INR 5,000 - TDS is required to be deducted u/s 194 and 194K.