TDS Section 194K — Income from mutual fund units
FY 2025-26 · Rate 10%
What does this section cover?
TDS on income distributed by mutual fund (dividend option) to resident unit-holder.
Why this section: Mutual fund dividend (IDCW) paid to resident investors above ₹10k per FY attracts 10% TDS.
Key facts
- Threshold
- ₹10,000 per FY (raised from ₹5,000 by Finance Act 2025)
- Applicable for
- FY 2025-26
- Who deducts
- Mutual fund / AMC
- Paid to
- Resident unit-holder
- Statutory source
- Section 194K, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194K is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.