InvestorQ : Do I have to pay tax if I switch my mutual funds from Growth to the dividend option?
Rishita Das made post

Do I have to pay tax if I switch my mutual funds from Growth to the dividend option?

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Aastha Awasthi answered.
1 month ago
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A switch transaction is considered as redemption from one scheme or option or plan and purchase in another scheme or option or plan. In your case where you are switching from Growth to Dividend option, it will be considered as redemption from Growth and purchase in Dividend option. Hence, it will attract STT as well as Long Term Capital Gain Tax. Dividends are taxable in the hands of investors, at a slab rate.
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