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Mumbai: Over 46 million equity-linked retail investors in mutual fund industry may be in for a jolt if the goverment goes ahead with its plans to tax dividends at a hefty 10 per cent from next fiscal year. This move is likely to see an outgo of around Rs 740 crore per annum from these investors, say experts.
However, industry lobby Amfi expects the government to heed its demand to shelve the plan and has already represented the matter to the finance ministry.
The fear comes after the tax department recently notified the amended section-115BBDA of Income-Tax Act 2017, which seeks to tax dividend from MF investments into equities at 10 percent if the total income of an assessee exceeds Rs 10 lakh, including dividends distributed or paid by companies.