Tax on dividend above 1000000
This query is : Resolved
17 July 2017
1 For FY1617 dividend above 1000000 is taxed at 10%. Is it applicable for dividend declared on mutual funds ?
2. I am now retired and my source of income is only from dividends. For FY1617, I got Rs. 1200000 dividend. So what is my tax liability? Is it NIL or 200000.
2. I am now retired and my source of income is only from dividends. For FY1617, I got Rs. 1200000 dividend. So what is my tax liability? Is it NIL or 200000.
18 July 2017
1. No it is not applicable to dividend declared on Mutual Funds
2. If your only income is Dividend from companies of Rs. 12,00,000/- Then you will have to offer Rs. 2,00,000/- as Income from Other Sources. This will be taxed u/s 115BBDA at 10% on Rs. 2,00,000/-. There will be no deduction allowed against this and no set-off of losses permitted.
If this is your only income then your tax will be Rs.20,000/-.
Since your total income is below Rs. 3,50,000/- you are eligible for rebate from tax of upto Rs. 5,000/- u/s 87A
Therefore your tax will be considered at Rs. 15,000/-. Add Cess to this and your final tax liability is Rs. 15,450/-
2. If your only income is Dividend from companies of Rs. 12,00,000/- Then you will have to offer Rs. 2,00,000/- as Income from Other Sources. This will be taxed u/s 115BBDA at 10% on Rs. 2,00,000/-. There will be no deduction allowed against this and no set-off of losses permitted.
If this is your only income then your tax will be Rs.20,000/-.
Since your total income is below Rs. 3,50,000/- you are eligible for rebate from tax of upto Rs. 5,000/- u/s 87A
Therefore your tax will be considered at Rs. 15,000/-. Add Cess to this and your final tax liability is Rs. 15,450/-
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