Union Budget 2024: 20% TDS rate on repurchase mutual fund units withdrawn
As per this section, any individual/institution paying a resident individual income towards mutual fund units must deduct TDS at 10% while crediting such income exceeding Rs. 5,000.
- Jul 23, 2024,
- Updated Jul 23, 2024 3:06 PM IST
FM Nirmala Sitharaman on Tuesday announced that 20% applicable on repurchase mutual fund units will be withdrawn. In the Budget 2020, FM Nirmala Sitharaman proposed the insertion of Section 194K in the Finance Act 2020. This section includes a tax deduction on the amount paid on the units of mutual funds, with a limit, to any resident individual.
With this provision, the exemption on income from mutual fund units was taken away. As per this section, any individual/institution paying a resident individual income towards mutual fund units must deduct TDS at 10% while crediting such income exceeding Rs. 5,000.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
FM Nirmala Sitharaman on Tuesday announced that 20% applicable on repurchase mutual fund units will be withdrawn. In the Budget 2020, FM Nirmala Sitharaman proposed the insertion of Section 194K in the Finance Act 2020. This section includes a tax deduction on the amount paid on the units of mutual funds, with a limit, to any resident individual.
With this provision, the exemption on income from mutual fund units was taken away. As per this section, any individual/institution paying a resident individual income towards mutual fund units must deduct TDS at 10% while crediting such income exceeding Rs. 5,000.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in