In India, dividend income is now taxable in the hands of shareholders, as domestic companies no longer pay Dividend Distribution Tax (DDT) from AY 2021-22. While DDT is generally abolished, there are specific cases where it still applies, particularly if a recipient receives dividends exceeding Rs. 10 lakhs in a financial year. Additionally, Tax Deducted at Source (TDS) under Section 194 is applicable on dividends exceeding Rs. 5,000.
Dividend distribution tax ìs payable in the following cases: 1. in case the recipient receives dividend aggregating to more than Rs.10 lacs in a financial year. 2. there is another clause.