Microlesson · 5-min read

Section 194K — Income from Units (Mutual Funds)

# Section 194K — TDS on Income from Units of a Mutual Fund / UTI

## Who deducts?

Any person responsible for paying income (other than capital gains) on units of mutual funds / UTI.

## Threshold

Income > ₹10,000 p.a.

## Rate

10%.

## Excluded

Worked example

### Example 1

Example: Mutual fund pays dividend (IDCW) of ₹40,000 to unitholder. TDS = 10% of ₹40,000 = ₹4,000.

### Example 2

Example: Unitholder earns capital gains of ₹2,00,000 on redemption — no 194K TDS (capital gain excluded).

Deducting TDS on capital gains under Sec 194K — it doesn't apply to capital gains.

Reference: 194K

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.