Dividend Distribution Tax @ 10% is already being taken by the government from this financial year 2018-19, before distribution of monthly dividend of Balanced Mutual Funds payout into the bank account.
So, even after such subtraction every month, if an individual earns a total of Rs. 5 lac annually, then, is this 5 lac income taxable according to slab rate basis ? Or this 5 lac earned is completely exempted income ?
1 Replies
Deepika Yadav
(561 Points)
Replied 28 April 2018
Dividend received from domestic company shall be exempt from tax under Section 10(34) if it is chargeable to dividend distribution tax under Section 115-O. However, as per section 115BBDA (as inserted by Finance Act, 2016), in the case of resident individual/HUF/firm, dividend shall be chargeable to tax at the rate of 10% if aggregate amount of dividend received during the year exceeds Rs. 10,00,000.
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