Tax exemption on dividends

What is the exemption limit on Dividends received in hands of Assessee of Mutual Fund / Equities

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Quick Summary
As of the financial year 2020-21, the exemption limit for dividends received from mutual funds and equities has been removed, meaning dividend income is now taxable. Dividends can be taxed under 'Income from other sources' if shares or MF units are held as investments. While Section 194A mentions a limit of £5,000, this relates to interest income, not dividends.

No exemption limit.

From F.Y 2020-21, Section 10(34) has been withdrawn-Exempting dividend Income from taxation.

Taxation of Dividend : Dividend can be taxable under head- Income from other sources or Business Income…It means if  shares/MF units are held as an investment then taxable as Income from other sources.

Section 194A limit of Rs 5000

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