Does that mean if I opt for "Dividend Reinvestment" option in a Equity fund, I do not need to pay taxes on dividends? What happens when I sell the units after 3 years? Somebody please answer...
RE:Query
by Dilip on Apr 04, 2007 02:56 PM Permalink
No, There will be tax on the Dividents, then the amount will be Re invested. In the Growth option, for Equity funds, long term tax is nil. logically, for the long run, growth option sounds better.
RE:RE:Query
by Ajay Pai on Apr 04, 2007 11:51 PM Permalink
In addition, if you are going for dividend then does not Payout and reinvest yourself make sense coz u get the money in hand and show the same dividend amount for the 1lakh limit? Anyway dividends are not taxed as income right ???
