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Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2016 Is there is share dividend is taxable in F.Y 2016-17 or It is Exempt

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)

29 August 2016 As per section 10(34) of Income Tax Act, 1961 any income by way of dividend referred to in section 115-O (Dividend not covered by section 2(22)(e) from a domestic company is exempt from tax up to F.Y 2015-16
From F.Y 2016-17 the section has been amended to provide that any income by way of dividend from domestic companies in aggregate in excess of Rs. 10 Lakh shall not be exempt from tax in the case of Resident Individual, HUF and Firm Recipient of Dividend in such a case is chargeable to tax at the rate of 10%(+SC+EC+SHEC) under Section 115BBDA.
Thanks.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 August 2016 Budget 2016 has introduced an amendment as a result of which if the dividend received by an individual/HUF is more than Rs. 10 Lakhs – then tax @ 10% would be liable to be paid by the person receiving such dividend.
No tax is payable by the person receiving the payment, if the total dividend received by an individual/HUF during the
financial year is less than Rs. 10 Lakhs.

Refer Section 115BBDA:

https://www.incometaxindia.gov.in/Acts/Income-tax%20Act,%201961/2016/Others/section115bbda.htm

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2016 sir if Dividend recd 15 Lac than tax will be calculated on 5 Lac after deduction of 10 Lac or it will be calculated on 15 Lac

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)

12 September 2016 On 5 Lacs the excess Amount only liable for tax.

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