Tds on dividend

Hi Vijaya

TDS Rate u/s 194 is 10%.

But TDS will not be deducted if the dividend is covered by section 115-O.

TDS will only be deducted if the amount of dividend exceeds Rs. 2500 during the financial year.

For more info. Please read Sec 194 & 115 O

Dividends are exempt in the hands of shareholder so no question of deduction of TDS arises.

However Dividend u/s 2(22)(e) is taxable for shareholder and thus TDS rate on such dividend is 10%

Originally posted by : Aakanksha
	Dividends are exempt in the hands of shareholder so no question of deduction of TDS arises. However Dividend u/s 2(22)(e) is taxable for shareholder and thus TDS rate on such dividend is 10%

Madam Sahi keh rahi he

Can we get the relevant section / provision in law where it says that TDS needs to be deducted on Deemed dividend u/s 2(22)(e)??