Taxation of Dividend received by an individual from Domestic companies

no tax on dividend since tax on dividend paid before disturbation 

so to avoaid double taxation  dividend is tax tree

yes 

For investors receiving dividend in excess of Rs 10 lakh per annum,  proposes tax at the rate of 10% of gross amount of dividend in addition to applicable from 2016-17

Dividend income received by investors was already taxed through Dividend Distribution Tax (DDT). Now, budget 2016 proposes that in addition to DDT paid by the companies, tax at the rate of 10% of gross amount of dividend will be payable by the recipients, that is, individuals, HUFs and firms receiving dividend in excess of Rs 10 lakh per annum. 

FM in the budget speech said, "Dividend Distribution Tax (DDT) uniformly applies to all investors irrespective of their income slabs. This is perceived to distort the fairness and progressive nature of taxes. Persons with relatively higher income can bear a higher tax cost." 

Among other areas, DDT is also relevant to mutual funds wherein any dividend which are declared by the fund houses are exempt from tax in the hands of investors. However, in debt mutual funds, AMCs pay Dividend Distribution Tax (DDT) from the distributable income at the rate of 28.33% (including surcharge and cess) (for Individuals and HUF investors). There is however no Dividend Distribution Tax (DDT) charged for equity mutual funds. 
 

In that case, the effective rates so far are lower for investors as the DDT is calculated on actual dividend distributed and not on gross amount distributed. But for an investor, the tax saved is calculated based on gross returns of his investment. For example, out of Rs.1 of distributable income, the AMC has to pay DDT on the dividend of retail investors  based on the following formula. 

That is (x + 28.33% of x = Re 1). Here, "x" denotes the dividend portion for retail investors. The result becomes (0.7793 paisa dividend + 0.2207 paisa DDT = Re. 1). Hence, the effective tax rate for retail investors (on the income distributed) comes closer to 22.07% and not 28.33%. In a nutshell, we can say that the AMC pays 28.33% on the dividend of retail investors which is the same as 22.07% tax on the gross returns of the investment of the investors. 
 

Yes. Upto FY 2015-16, the dividend shall be exempt u/s 10(34) eventhough it exceeds 10Lakhs.

For FY 2016-17 onwards, the dividend received by you (being individual), in excess of Rs. 10 Lakhs, shall be taxable @ flat 10% + cess. The dividends are still exempt UPTO Rs. 10 Lakhs.

You need to pay tax @ 10% on Rs.2Lakhs only.. (Rs.10Lakhs is exempt)