Income exempt from Dividend income from Mutual funds.

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47 Points Posted on 20 October 2020
Previously income from dividend received from mutual funds up to Rs.10,00,000/- is exempted in the hands of the individual. Whether the same is available now from FY 2020-21?
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On 20 October 2020 at 16:39 Report
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This discussion clarifies the taxability of dividend income from mutual funds for the Financial Year 2020-21 (Assessment Year 2021-22). Previously, dividends up to Rs. 10,00,000 were exempt. However, for FY 2020-21 onwards, dividends are taxed in the hands of the recipient at their applicable income tax slab rates. While Dividend Distribution Tax (DDT) was previously paid by companies, this has changed, and Section 115BBDA is no longer relevant for individual taxpayers in this regard.

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Confidential
177 Points Posted on 20 October 2020
For ay 20-21 u/s 10(34) dividend income is exempt in the hands of shareholders because company is liable to pay CDT us 115o on this
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On 20 October 2020 at 20:16
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47 Points Posted on 20 October 2020
Sir, I am concerned with FY 2020-21 i.e AY 2021-22 where dividend is taxed in the hands of the receiptent and mainly whether exemption available up to Rs.10,00,000/- on the dividend received from Mutual funds. Pl clarify.
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On 20 October 2020 at 20:23
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Confidential
177 Points Posted on 20 October 2020
Taxable
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On 20 October 2020 at 21:48
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Tax consultant
5895 Points Posted on 21 October 2020
The dividend will added to the individuals icome and will be taxed at the applicable income tax slab rate
if it exceeds rs 5000 in a financial year the TDS will be cut @ 10%
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On 21 October 2020 at 00:23
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47 Points Posted on 21 October 2020
What is the relavance of Sec 115BBDA . Itis not amended. Pl clarify.
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On 21 October 2020 at 08:24
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285 Points Posted on 21 October 2020
@ devil, it is DDT dividend distribution tax , not cdt
There is nothing like cdt ....Ok I understood probably mugupping has these kind of effects ...its ok
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On 21 October 2020 at 14:15
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47 Points Posted on 21 October 2020
Thank you all for giving clarifications.
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On 21 October 2020 at 16:54
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Tax consultant
5895 Points Posted on 21 October 2020
As for sec 115BBDA assessee is no longer required to pay tax under this as TDS is their
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On 21 October 2020 at 18:48

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