How to claim TDS under Section 194K on mutual fund income in ITR
Section 194K TDS credit is automatically deducted by AMCs on MF dividend income and credited to your PAN. In ITR, claim this as tax credit against your total tax liability. Pre-filled Schedule TDS makes this straightforward; verification against AMC records ensures accuracy.
Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC or tax service. No affiliate commission is earned.
Step-by-step procedure
See the procedure infobox above.
What Section 194K covers
| Item | Covered by 194K? |
|---|---|
| MF dividend (IDCW) | Yes |
| MF capital gains (redemption / switch) | No (separate Section 195 for NRI; resident not under TDS) |
| MF interest on bond schemes | Yes (effectively) |
| ETF distributions | Yes (treated as MF) |
Note: Section 194K covers MF income, not capital gains on redemption. Capital gains tax is paid directly by investor in ITR; no TDS on those.
Form 16A vs 26AS
| Document | Issued by | Detail |
|---|---|---|
| Form 16A | AMC | Quarterly + annual summary of TDS on your behalf |
| 26AS | IT Dept (sourced from AMC’s TDS filing) | Comprehensive across all deductors |
Form 16A is AMC’s direct certificate; 26AS is the aggregator. Should match.
Schedule TDS-1 entry
In ITR-2 / ITR-3 Schedule TDS-1:
| Field | Source |
|---|---|
| TAN | AMC’s TAN (from Form 26AS / Form 16A) |
| Deductor name | AMC name |
| Section | 194K |
| Year of TDS | FY of deduction |
| Amount of income | IDCW pre-TDS |
| TDS deducted | Tax amount |
| TDS claimed in current year | Same as deducted typically |
Multi-AMC IDCW
If you have IDCW from 5+ AMCs with TDS:
- Each AMC has its own TAN and 194K entry.
- Each Rs 5,000 threshold is per AMC per FY.
- Aggregate TDS credit = sum of all AMCs’ TDS.
When TDS claim fails
| Issue | Cause | Resolution |
|---|---|---|
| TAN mismatch | Pre-filled wrong TAN | Edit to actual TAN |
| Amount mismatch | AIS vs Form 16A different | Use Form 16A |
| Income not declared in Schedule OS | TDS without corresponding income | Add to Schedule OS |
| Year mismatch | TDS in different FY than claim | Correct FY |
Quarterly TDS vs annual
AMCs file TDS quarterly:
- Q1: April-June.
- Q2: July-September.
- Q3: October-December.
- Q4: January-March.
Annual Form 16A consolidates. 26AS updates quarterly + annual.
For FY 2024-25 ITR (due 31 July 2025), 26AS may not show Q4 (Jan-March 2025) until April-May 2025; verify timing.
See also
- How to claim TDS on MF dividend in ITR
- How to reconcile Form 26AS with MF transactions
- How to fill Schedule OS for MF dividend
- How to report MF capital gains in ITR
- How to choose ITR form for MF
- How to revise ITR (MF)
- How to handle foreign MF in ITR
- How to track TCS on foreign remittance
- How to decide growth vs IDCW option
- How to link PAN to Aadhaar (MF context)
- Section 194K (TDS on MF income)
- Section 195 (NRI TDS)
- Form 16A
- Form 26AS
- Annual Information Statement (AIS)
- TDS on MF dividend (Section 194K)
- Income Distribution cum Capital Withdrawal (IDCW)
- Schedule TDS
- Schedule OS
- Mutual funds in India
- AMFI
- SEBI
External references
References
- Income Tax Act, 1961, Section 194K.
- CBDT Circular on Section 194K implementation.
- CBDT Form 16A specifications.