Yes, Angel One deducts TDS (Tax Deducted at Source) on mutual fund dividends if your total dividend income from mutual funds exceeds ₹5,000 in a financial year. The TDS rate is 10% on dividends paid before the amount is credited to your account. If the dividend income is ₹5,000 or less, no TDS is deducted.

What Is TDS on Mutual Fund Dividends?

TDS or Tax Deducted at Source is a tax collection method by the government where tax is deducted directly when income is paid. For mutual fund dividends, TDS means that the mutual fund company deducts tax before paying the dividend to you. The current rate for mutual fund dividends is 10% if the total dividend income is more than ₹5,000 in a year. This helps you pay tax gradually instead of a lump sum later.

How Is TDS on Mutual Fund Dividends Calculated?

If your total dividend income from mutual funds in a financial year exceeds ₹5,000, Angel One deducts 10% TDS on the dividend amount. For example, if you get ₹10,000 as dividend, ₹1,000 will be deducted as TDS and ₹9,000 will be credited to your account. If your dividend income is ₹5,000 or below, no TDS is deducted and you receive the full dividend amount.

Who Deducts the TDS on Dividends?

Angel One, as the mutual fund distributor and registrar, is responsible for deducting TDS on dividends paid to investors. The TDS is deducted before the dividend is credited to your bank account. The deducted tax is then deposited with the Income Tax Department. You will get a TDS certificate or it will be reflected in your Form 26AS, which you can use while filing your income tax return.

How Can You Avoid or Reduce TDS Deduction?

You can avoid or reduce TDS by submitting a valid declaration or Form 15G/15H if your total income is below the taxable limit. Also, ensure your PAN is updated with Angel One; otherwise, TDS may be deducted at a higher rate. If your income is taxable, you can claim the TDS amount as a refund while filing your income tax return.

How to Check TDS Deducted on Your Mutual Fund Dividends?

You can check the TDS deducted by Angel One by viewing your Form 26AS on the Income Tax Department’s website. This form shows all the taxes deducted and deposited against your PAN. You can also check dividend statements or your Angel One account dashboard where TDS details are updated regularly.