Div­i­dend Tax­a­tion In India

Dalal Street Investment Journal - - SPECIAL REPORT -

Ac­cord­ing to the In­come Tax Act and the amend­ments made in its clause through the Fi­nance Bill 2017, div­i­dend in­come sourced from eq­uity shares of In­dian com­pa­nies are ex­empted from tax­a­tion. How­ever, all the res­i­dent In­di­ans are li­able to pay a 10 per cent tax on the div­i­dend amount re­ceived from do­mes­tic com­pa­nies in ex­cess of ₹10 lakh, as stated in the Bill. The fol­low­ing tax is charged over and above the div­i­dend dis­tri­bu­tion tax paid by the com­pany which de­clares such div­i­dends.

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