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Divindend income

ANIL KUMAR KHETAN (PROPRIETOR) (487 Points)

15 October 2020

dividend income taxable or not for fy 2019-20 and Ay 2020-21. Please clarify the position

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5 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 15 October 2020

In 2019-20 fy dividend in the hand of individual upto 10 lakh is expemted
but now it is taxable as per income tax slab

Shivam RC (Student) (23683 Points)
Replied 15 October 2020

As per the Provision of Section 10(34) of the Income Tax Act 1961, Dividend Income upto Rs. 10 lakhs received from Domestic Company is EXEMPTED from Income Tax. However under Section 115BBDA, Dividend Income in excess of Rs. 10 lakhs is taxable @ 10% without any basic exemption limit, incase of PY 2019-20, AY 2020-21.

sabyasachi mukherjee (26065 Points)
Replied 16 October 2020

Dividend income is exempted upto 10 lakhs.

kalpana giri (11 Points)
Replied 16 October 2020

Dividend income form domestic company shall be exempt from tax in the hands of the shareholder as per section 10(34). however dividend received form foreign company to be taxed in the hand of shareholder. as per section 115BBDA dividend received from domestic company exceeding 10 lakh shall be taxable @ 10%. upto 10 lakh is exempt