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Aug 04, 2011, 03.37 PM IST | Source: Moneycontrol.com

What is the tax on dividends and interest?

ANY income that does not fall under the four heads of income, namely salaries, business or profession, house property or capital gains will fall under the 'other income' head.

What is the tax on dividends and interest?
ANY income that does not fall under the four heads of income, namely salaries, business or profession, house property or capital gains will fall under the 'other income' head.

So, dividends (from shares and mutual funds ) and interest (from bank deposits, postal schemes and other debt products) fall under this head.

All the taxable income from this head is added to your total income and tax is calculated at your regular tax slabs.


Dividends

Instrument

Taxation

Equity shares

Tax free

Equity mutual funds

Tax free

Debt mutual funds

Tax free



 

 

Interest

Instrument

Taxation

Bank deposits

Taxable

Public Provident Fund (PPF)

Tax-free

Postal schemes other than PPF

Taxable

Bonds and debentures

Taxable

 

 

 

 

 

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