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Getting dividend as regular income? Beware! You have to pay tax and reveal it in ITR this year
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While investing in mutual fund (MF) schemes, many people opt for the dividend payout option to get regular income while staying invested. People investing in direct equities also enjoy dividend income, depending on the quantum of profit earned by the companies.
Till the financial year (FY) 2019-20, companies and fund houses used to pay Dividend Distribution Tax (DDT) before distributing the dividend, while the dividend amounts received were tax-free in the hands of investors.
So, irrespective of
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