Mutual Fund Dividend Fully Exempt Because Section 115BBDA Doesn’t Apply

Indu Maheshwari Vs Circle 19(1) (ITAT Mumbai) Mutual Fund Dividend Is Fully Exempt u/s 10(35): CPC Can’t Apply Section 115BBDA Due to Return-Form Constraints, Holds ITAT Mumbai The Mumbai ITAT “C” Bench allowed the appeal of Indu Maheshwari (ITA No. 715/Mum/2025, AY 2017-18), holding that dividend income earned from mutual funds is wholly exempt u/s 10(35) and cannot be subjected to tax u/s 115BBDA, merely because the return form lacked a separate disclosure column and the CPC mechanically treated it as dividend from domestic companies The Assessee had disclosed dividend income from mutu...