Indian native receiving dividend from netherlands

Hello,

Assume, an Indian native holding stocks worth 10 lacs in a Netherlands firm.

He receives a dividend of 1 lac every year.

How is this treated while filing tax (while his taxable income from his job > 18 lacs/year)

a) taxed at 30% tax slab

b) tax avoided in order to avoid double taxation

c) taxed at any other rate (10 or 15 %)

Kindly clarify.

Thanks,

Ram

Replies (1)

Dividend Income received from a foreign company is not exempt u/s 10(34). Hence, it is very much taxable.

Assuming that you are resident, The income above will be included in the computation under the head "Income From Other Sources". 

India has entered into a Double Taxation Avoidance Agreement with Netherlands. "Article 10 - Dividend " says, Both the states have the right to tax the dividend earned in one of the country.

Since you have paid tax in netherlands, you can claim relief u/s 90A.

so, you are supposed to add the dividend income in your computation sheet and then claim relief for the same.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details