Dividend tax

As per Section 115BBDA in the case of a resident individual/HUF/Firm, the dividend shall be chargeable to tax at the rate of 10%, if the aggregate amount of dividend received from a domestic company during the year exceeds Rs 10,00,000.

Addressing your specific query, as per my opinion Rs 65 Lacs (75 Lacs minus 10 Lacs) shall be taxed @ 10% because the taxability @ 10% is for the amount in excess of Rs 10 Lacs.

It must be noted that dividend receipts does not include amount received from foreign companies as dividend and also dividend as per Section 2(22)(e) as the taxability in such cases will differ.

Hope your query is resolved.

Sir,

Thanks fpor Reply. My doubt is dividend is consider for tax, as  on aggreegate basis or Individual basis. example: i received this FY 2017-18 total 25,25,000.as below.

1.Company -A-  25,00,000

2.Company -B- 25,000

total     Rs 25,25,000.

You are  saying tax is imposed on 25,25,000-10,00,000= 1515000*10%.

My doubt is  Dividend received from Company A is exceeds 10 lkhs , so balance 15 lkhs is taxable.

But n Company B dividend received  is less than 10 lakhs i.e 25000. i need clarification about dividend received from Company -B is Taxable or not.

Please clarify me. 

Yes, dividend received from Company B is Taxable. The Section say that any amount in excess of Rs 10 Lacs received as dividend shall be taxed at 10%. Therefore it doesnt matter from how much companies you receive dividend. Amount in excess of 10 Lac is Taxable. Therefore, Dividend Received from Company B is Taxable

Ok ,

Thank you so much.