Tax on Dividend

Do we have the tax on dividends of Equities as it is imposed on MFs Dividends?

No! Because the tax is already paid by the corporates.

Hi @mac76 - Please don’t misguide if you have no knowledge about the topic.

Hi @Shivam_Gupta - Tax at the rate of 10% of gross amount of dividend will be payable by the recipients, that is, individuals, HUFs and firms receiving dividend in excess of Rs 10 lakh per annum.

This was included in 2016 Budget.

Google it and you will find it.

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I answered the question keeping in mind the retail investor. A person who is earning Rs.10 lakh dividend must be super rich. For a retail investor, it’s tax free.

He didn’t questioned keeping retail investors in mind. It was a generic question from him, so you have to be super exact about answering it. That was my only concern.

@darshank - Please also tell about taxation on dividend earned from Mutual funds for different dividend income slabs.

There are two different taxes applicable on dividend.

  1. Dividend Distribution Tax - Around 20% (including surcharge and cess). This is paid by the company
  2. Tax on Dividend - The question is specifically about this tax. The rate is 10% and is charged on dividend income above 10 lakhs.

Is it possible to switch MFs scheme type without withdrawing money ie dividend to growth or vice-versa?