Dividend exceeding 10 lakhs

Tax queries 258 views 2 replies
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Professional
195 Points Joined December 2016

One Very Senior Citizen has Dividend income of Rs. 10,77,000 for AY 2018-19 filing form ITR2. He has total income of Rs. 2,90,000 from all other sources. Basic Exemption limit for him is 5 Lakhs. Does Rs.77,000 (In excess of 10 Lakhs) be eligible to adjust in basic exemption OR will he have to pay tax of 10% on Rs.77,000 and if so what will be Tax Liability - is there any rebate available to very senior citizens.

please advice. Thanks

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On 25 June 2018 at 23:17 Report
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Article Assistant
456 Points Joined December 2014
As per section 10(34) dividend on which Dividend distribution tax is paid is exempt in hands of receipt.
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On 15 July 2018 at 22:27
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ACA ACMA
582 Points Joined July 2016

Dividend income of Rs.77,000 /- is taxable @ 10 % and no basic exemptin is available for the same as per section 115 BBDA.

Dividend income up to Rs.10 lac is exempted under section 10 (34).

Total tax liabilty will be Rs.7,930 /-  (7,700+231)(10%tax +EC). Rs.2,90,000 /- will be covered under basic exemption.

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On 15 July 2018 at 23:05


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