DIVIDEND TAXATION


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Following the Finance Act 2020, dividend taxation has reverted to the classical system, meaning dividends are now taxed in the hands of shareholders and unit holders from April 1, 2020. This change abolished Dividend Distribution Tax (DDT), which was previously levied on the company. Consequently, any dividend income received from schemes like the HDFC Balanced Advantage Fund is now taxable under Income From Other Sources (IFOS) from Assessment Year 2021-22 onwards.

31 October 2020 hDFC BALANCED ADVANTAGE FUND - REGULAR PLAN - DIVIDEND IS TAXABLE. aSSSEESSEE REGULARLY GOT 13831 AS MONTHLY INCOME .

05 November 2020 The Finance Act 2020 has shifted back to the classical system of taxing dividend in the hands of shareholders/unit holders from 01 April 2020, and abolished dividend distribution tax (DDT), wherein the incidence was on the company.

02 October 2021 Yes, from AY 2021-22, dividend received on the scheme is taxable under IFOS.


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