SHAHNH (Professional) (162 Points)
25 June 2018One 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
Srinivasa Ganesh
(Article Assistant)
(456 Points)
Replied 15 July 2018
Anjali P Nair
(ACA,ACMA)
(582 Points)
Replied 15 July 2018
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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