Can I claim tax exemption on the mutual fund dividend reinvestment amount ?

POSTED BY azeez ON February 6, 2015 8:10 am ONE COMMENT

Hi This Year I have invested 80k in Reliance tax saver ELSS fund (Dividend Reinvestment Option) in nov 2014 Around Rs 3300/- was received as dividend and it was reinvested. So can i claim tax exemption on Rs 80000/- + Rs 3300/- Our company IT department is saying we cannot claim tax on Dividend Reinvestment amount (Rs 3300). Request you to kindly reply to this with proper reference from Income tax department of Govt of India

Request you to kindly reply to this with proper reference from Income tax department of Govt of India

One reply on this article “Can I claim tax exemption on the mutual fund dividend reinvestment amount ?”

  1. Manish Chauhan says:
    February 6, 2015 at 8:18 am

    You can claim it under 80C . As per this article http://www.livemint.com/Money/H209hsABpZlT8MjDedsLON/DYK-Dividend-reinvested-in-ELSS-tax-deductible.html

    Investments made in ELSS funds, which are also known as tax-saving MF schemes, qualify for tax deduction for amounts up to Rs.1.5 lakh under section 80C. There is also a lock-in period of three years. In case you choose dividend reinvestment option under ELSS, the dividend is automatically reinvested and gets eligible for further tax deduction under section 80C (as dividend reinvested is treated as fresh investment) in the relevant financial year in which it gets reinvested, irrespective of when the initial investment was made.

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