Tax rate on dividend received from mutual funds deriving 50% or more income from profit on debt
Tax rate on dividend received from mutual funds deriving 50% or more income from profit on debt: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001
Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.
Tax rate on dividend received from mutual funds deriving 50% or more income from profit on debt
The tax rate on dividend received from a mutual fund is 15%. Through the Finance Act, 2024, in the First Schedule, a proviso has been added in clause (b) of Division III of Part I and in clause (b) of Division I of Part I whereby the rate ,of tax on dividend received from a mutual fund and the rate of tax to be deducted on dividend received from a mutual fund which derives 50% or more of its income from profit on debt has been enhanced to 25%.
Read full text of Explanation of Finance Act, 2024 Amendments made in the Income Tax Ordinance, 2001 for more updates on taxes from FBR click here.
