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Dividend income

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Bhola Nath Roy

21 Points Posted on 07 January 2021

is there any exempted of Rs.1 lakh is allowed in dividend income during AY 21-22?

Replies (4)

Quick Summary

This discussion clarifies the tax implications of dividend income for Assessment Year 21-22. While a 10% TDS generally applies to dividend distributions, there's no TDS if the annual dividend receipt from a company or mutual fund is below Rs 5,000. The Rs 1 lakh exemption mentioned is specifically for Long Term Capital Gains (LTCG) and not applicable to dividend income.

Krishna Chaudhary

Accountant

4533 Points Posted on 08 January 2021

A TDS of 10% applies to the dividend income distribution per investor. However, no TDS is applicable if the dividend receipt from a company or mutual fund does not exceed Rs 5,000 annually. For the FY 2020-21, the rate of TDS stands reduced to 7.5% for dividends paid till 31 March 2021.