Union Budget 2024: 20% TDS rate on repurchase mutual fund units withdrawn

FM Nirmala Sitharaman on Tuesday announced that 20% applicable on repurchase mutual fund units will be withdrawn. In the Budget 2020, FM Nirmala Sitharaman proposed the insertion of Section 194K in the Finance Act 2020. This section includes a tax deduction on the amount paid on the units of mutual funds, with a limit, to any resident individual. 

With this provision, the exemption on income from mutual fund units was taken away. As per this section, any individual/institution paying a resident individual income towards mutual fund units must deduct TDS at 10% while crediting such income exceeding Rs. 5,000.