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Dividend income

Bhola Nath Roy (21 Points)

07 January 2021

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

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Krishna Chaudhary (Accountant) (4531 Points)
Replied 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.

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Smit Shah (524 Points)
Replied 08 January 2021

As per section 194 deductor will have to made TDS @ 10% (dividend received in a period between 14.05.2020 to 31.03.2021 rate is 7.5%).
if it does not exceeds Rs.5000 then not liable for TDS