Indira (CA ) (1379 Points)
20 September 2021Hi
What will be the surcharge rate on foreign dividend if the income exceeds 2 Crore for a individual. Is it flat 15% for all dividend from shares and units. Also what about foreign dividends. Is it 15% or 25% for foreign dividends?
Thanks
Indira K V
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 20 September 2021
Rate of surcharge in case of non –resident individuals/HUF/AOP/BOI-
| Amount of Dividend | Section 195 | Section 196C/196D |
| UP TO Rs 50lakhs | Nil | Nil |
| 50lakhs-1 crore | 10% | 10% |
| 1 crore-2 crore | 15% | 15% |
| 2 Crore-5 crore | 15% | 25% |
| Above 5 crore | 15% | 37% |
Rate of surcharge in case of Non resident companies-
| Amt of dividend | Rate of surcharge |
| Up to Rs 1 crore | Nil |
| 1 crore-10 crore | 2% |
| Above 10crore | 5% |
Health & Education cess @ 4% shall be applicable in all cases.
Indira
(CA )
(1379 Points)
Replied 20 September 2021
Thank you. So if i receive dividend from foreign company, then my dividend surcharge will be restricted to 15%. Correct?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 20 September 2021
The withholding tax rates given above are for Indian companies, over the dividend distribution of 20% + surcharge+ cess.
For dividend received from foreign companies it may differ as per DTAA agreement with the countries.
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