Section 194K → Section 216
TDS on income in respect of units (Mutual Funds)
Quick Answer
Section 194K of the Income Tax Act, 1961 (TDS on income in respect of units (Mutual Funds)) corresponds to Section 216 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 194K
Provision Summary
TDS @ 10% on dividends paid by mutual funds exceeding Rs. 5,000 in a year.
Sec 216
Provision Summary
Retained. Captures mutual fund dividend distributions after the abolition of DDT.
Key Changes & Highlights
- Capital gains on the sale of units are strictly exempt from this TDS.
Related Sections
Frequently Asked Questions
What does Section 194K of the Income Tax Act 1961 deal with?
Section 194K (TDS on income in respect of units (Mutual Funds)) TDS @ 10% on dividends paid by mutual funds exceeding Rs. 5,000 in a year.
What is the new section number for Section 194K under the Direct Tax Code 2025?
Section 194K of the ITA 1961 maps to Section 216 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 194K under the new tax code?
Section 194K is marked as "Retained" with status "Active". Impact: Very High - Affects millions of retail mutual fund investors.
What are the key changes to Section 194K under DTC 2025?
Capital gains on the sale of units are strictly exempt from this TDS.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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