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10% TDS u/s 194K to be levied only on dividend payment by Mutual Fund; CBDT clarifies

February 5, 2020
The Central Board of Direct Taxes (CBDT) has clarified that under the section 194K as proposed by the Finance Bill, 2020, a Mutual Fund shall be required to deduct TDS @ 10% only on dividend payment and no tax shall be required to be deducted by the Mutual Fund on income which is in the nature of capital gains.
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