will mutual fund dividend gains be taxable under new direct tax code of India?

I hear under new direct tax code mutual fund dividend gains will become taxable. How likely is it?

And, what are the other sources of investments I should look into for areas where income is tax free and also grows at a proper rate for wealth creation. I cannot invest into real estate or equity markets(as i cannot do day trading).

Any advice would be welcome.

There are 2 options for MF gain payout. Dividend & Growth.

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If you opt for Growth, then your investment may appreciate in the long term. In this case you incur LTCGs. At present these are tax free. Govt proposes to tax such LTCGs in new DTC.

If you opt for dividend payout, then the company already pays DDTax before distrtibuting dividend and so it is not taxed in your hand.

You can invest in PPF or NPS.

HMT

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