Heads of income.

Dividend From Indian Companies Exempt U/s 10(34).

1) Profit From Sale Of Share And Securities Held As Stock In Trade Is Taxable As PGBP

2) And If You Treated As Investment The It Will Considerd Under Capital Gains

thanks,

we are treating the share trading income as 
PGBP but the question is about the treatment of share dividend received during the year from shares in which firm is trading,

wherether it's IFOS & exempt u/s 10(34).

or

income as PGBP & taxable. 

Taxable under PGBP. because u are trading in the shares from which u received the dividend.

Sry dear,

Same is exempt under section 10(34).

but as per amemdmend in budget 2016 if dividend recd. is more than 10 lacs during the year u have to pay 10% tax on the same.

Dividend received on shares is exempt. It is irrelevant whether shares are held as stock-in-trade or investment.

And Dividend income should be shown under IFOS head only.

So It is IFOS and Exempt u/s 10(34)