5 things to know about TDS on income from mutual funds

1. Mutual fund dividends are subject to TDS at the rate of 7.5% for dividends in excess 1to Rs 5,000.

2. TDS is applicable to dividend payout, dividend reinvestment and dividend transfer plan.

3. Capital gains are not subject to TDS for domestic investors.


4. Capital gains for NRIs are subject to TDS of 30% for short-term capital gains and 20% with indexation for longterm capital gains

5. Form 15G /15H wherever applicable can be submitted to avoid TDS.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.