complete online personal finance knowledge book

Self Browse :

Dividend Distribution Tax

When a company or a mutual fund pays out a dividend, the Government steps in to collect a share of the proceeds. It collects a tax called the dividend distribution tax (DDT). The specifics may vary:

  • Each type of investment (shares, equity mutual fund, debt mutual fund, etc) has a different rate of DDT. Currently the government is more lenient towards equity, while it taxes cash funds heavily
  • Sometimes the government makes it a responsibility of the company or mutual fund to compute and pay this tax; and sometimes that of the investor. But in either case, remember that money is finally coming from your corpus, so the end result is the same!

List of All Glossaries

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling