Tax Corner
Tax on dividend declared by debt-oriented funds

  Dividend Income Dividend DistributionTax – Other than Liquid /Money Market Schemes Dividend DistributionTax – Liquid /Money Market Schemes
2008-09 2009-10 2008-09 2009-10 2008-09 2009-10
Resident individual/HUF Tax free 14.1625% (12.50% +
10% surcharge + 3% education cess)		 12.875% (12.50% +
3% education cess)		 28.325% (25% +
10% surcharge + 3% education cess)		 25.75% (25% +
3% education cess)
Partnership firm/AOP/BOI Tax free 22.66% (20% +
10% surcharge + 3% education cess)		 20.60% (20% +
3% education cess)		 28.325% (25% +
10% surcharge + 3% education cess)		 25.75% (25% +
3% education cess)
Domestic company* Tax free 22.66% (20% +
10% surcharge + 3% education cess)		 22.66% (20% +
10% surcharge + 3% education cess)		 28.325% (25% +
10% surcharge + 3% education cess)		 28.325% (25% +
10% surcharge + 3% education cess)
NRI Tax free 14.1625% (12.50% +
10% surcharge + 3% education cess)		 12.875% (12.50% +
3% education cess)		 28.325% (25% +
10% surcharge + 3% education cess)		 25.75% (25% +
3% education cess)

  • * No surcharge will be applicable for Domestic Companies if the dividend received by them is less than Rs 1 Cr.
          "No Surcharge for Resident Indians, Partnership Firms and NRIs:"

  • Taxation of Capital Gains earned on Debt Funds
  • Go to Tax Corner