We will keep this short and straight. #1 Renaming of the dividend plan to IDCW The dividend plans of mutual funds are now called IDCW or Income Distribution and Capital Withdrawal plan. You see, dividends with mutual funds hardly ever made sense. They only redistribute any money earned via dividends from stocks or interest on […]
5 Tax Changes in FY 2020-21 you should know
April 1, 2020 marked the onset of a new financial year. It also brought into action the new tax changes as proposed in the Budget 2020. Let’s look at the 5 key changes that you need to be aware of as well as plan for. #1 Are you salaried? Time to make your tax slab […]
[HNI Taxes] Should you switch from dividend option to growth in your debt funds?
As per Budget 2020, dividends are now taxable in the hands of investors. There will be no Dividend Distribution Tax paid by the companies or mutual funds. Additionally, there is a TDS of 10% if the dividend paid is more than Rs. 5,000 in a financial year. Given the new tax rules, should you switch […]
Dividend Reinvestment option – Impact of LTCG tax
If you are using the dividend reinvestment option in your mutual funds, chances are you are confused about the implications of taxes in the new LTCG regime. At least one person is. Let’s clear the air. Here are 3 questions posed by a reader about taxes on dividend reinvestment. Is the dividend reinvest being taxed. […]
A mutual fund dividend for all the wrong reasons
Religion is the opium of the masses and dividend is the opium of investors. Caution: Several hybrid / balanced mutual fund schemes are sold with the promise of a monthly dividend. Beware of such schemes and offers. In my view, they are equivalent of ponzi schemes, using money received from new investors to pass on as dividends to older investors, pocketing […]
