InvestorQ : Does Mutual fund company pay the taxes on the dividends received to them from the stocks?
shrinidhi Rajan made post

Does Mutual fund company pay the taxes on the dividends received to them from the stocks?

Answer
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AR Kadam answered.
8 months ago


Tax on Dividend were paid by the issuer i.e. the company which declares and Dividend received were tax free in the hands of the recipient. Therefore there was no question of Mutual Funds paying tax on the dividends received to them from the stocks.

Going ahead, this may change given the recent announcement in the budget for retail investor but the income received and returns generated by the mutual funds are tax free, as mutual funds are kind of public trust.