Is dividend distribution tax applicable on dividend reinvestment plan

Whether Dividend Distribution Tax is applicable in dividend reinvest plans of MF?

Jan 30, 2019 by Mohammad Wasim, Burnpur  |   Mutual Fund

Yes, dividend distribution tax (DDT) is applicable also on dividend reinvestment plans of mutual funds.

Please note that even though dividends received in the hand of the investor is free, the AMC has to pay dividend distribution tax (DDT) irrespective of whether the investor has opted for dividend paid or re-investment option.

We suggest you to read the following two blogs on dividends -

https://www.advisorkhoj.com/licmf...

https://www.advisorkhoj.com/iciciprumf...

Hope this answer your query. Thanks.

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