What are Tax benefits to Mutual Funds?
• Sec 10 (23D): Under provisions of section 10 (23D) of the Income Tax Act, any income received by the mutual fund is exempt from tax. • Sec 115 R: Under section 115 R of the Income Tax Act, the income distributed to a unit holder of a mutual fund shall be charged to tax at a flat rate of 10% (plus 2% surcharge) to be payable by the Mutual fund. However, above distribution tax will be exempted for a period of three years, commencing from financial year 1999-2000 i.e., April 1, 1999 for open ended equity oriented funds.
