Home/ Questions/Q 6014
Next
In Process
CA Vishnu Ram
  • 0
Enlightened
Asked: 2021-12-05T14:39:40+05:30 In:

Is dividend taxable under Income Tax Act?

  • 0
Is dividend taxable under Income Tax Act?
Share

    1 Answer

    1. Enlightened Chartered Accountant

      Yes, dividend is taxable under the Income Tax Act, 1961. Here's a detailed, expert-level reply tailored to your rules: Dividend income is now taxable in the hands of the recipient/shareholder as per Section 56(2)(i), under the head "Income from Other Sources". Taxability of Dividend Income (From AYRead more

      Yes, dividend is taxable under the Income Tax Act, 1961. Here’s a detailed, expert-level reply tailored to your rules:

      Dividend income is now taxable in the hands of the recipient/shareholder as per Section 56(2)(i), under the head “Income from Other Sources”.

      Taxability of Dividend Income (From AY 2021-22 onwards):

      Recipient Tax Treatment
      Resident Individual Taxed at applicable slab rates under Income from Other Sources (Section 56)
      Domestic Company Taxed at applicable corporate tax rate
      Foreign Company/Non-resident Taxed @ 20% (plus surcharge and cess) under Section 115A(1)(a) (subject to DTAA)

      TDS on Dividend – Section 194 & 195:

      • Section 194:
        TDS @ 10% if the dividend paid to resident exceeds ₹5,000 in a financial year.

      • Section 195:
        TDS on dividend paid to non-resident is generally 20% (plus surcharge and cess), subject to benefits of DTAA.

      See less
      • 0

    Leave an answer

    You must login to add an answer.

    Need An Account,