Income-tax Act, 1961Section 194K
- 10% TDS on income from mutual fund units above ₹10,000 a year
- Not on capital gains on redemption
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 194K
TDSSection 194K → Section 393
TDS on mutual fund income distributions
Section 194K of the old Income-tax Act, 1961 · new section 393 under the Income-tax Act, 2025
New reference Section 393(1), Table Sl. No. 4(i)
Income-tax Act, 2025Section 393(1), Table Sl. No. 4(i)
- Section 393(1), Table Sl. No. 4(i): 10%
- Threshold ₹10,000
- Business trust / investment fund / securitisation trust distributions: Sl. Nos. 4(ii)–(iv)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Consolidated into section 393.
Practice notes
- Form 15G/15H can be used (section 393(6)).
Frequently asked
What is the TDS on mutual fund dividend under the new Income Tax Act 2025?
10% where distributions exceed ₹10,000 a year, under section 393(1), Table Sl. No. 4(i).
What is section 194K called in the new Income-tax Act, 2025?
Section 194K of the Income-tax Act, 1961 corresponds to Section 393(1), Table Sl. No. 4(i) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 194K under the new Income Tax Act?
Consolidated into section 393.
Is section 194K still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 194K of the 1961 Act. Section 393(1), Table Sl. No. 4(i) of the 2025 Act applies from tax year 2026-27.