Question 86 of 90
Which statement is true with respect to the applicability of TDS on capital gains from mutual fund units?
A
There is no TDS on capital gains from mutual funds for all investors
B
TDS is deducted at 10% on all declared dividends
C
All capital gains from mutual fund investments are subject to TDS at 10%
D
TDS is not applicable on capital gains for resident individuals but is applicable for Non-Resident Indians (NRIs)
Correct Option:
D
Explanation
No TDS is deducted on capital gains earned by resident investors. However, TDS is applicable to Non-Resident Indians (NRIs) on capital gains from mutual fund units at the applicable rates under the Income-tax Act.
