Tds on dividend

vijaya kumar n (JOB) (488 Points)

04 August 2011

Hi Good Afternoon to All,

What is the TDS rate on Dividend for Domestic Company and Foreign Company...............................

Awaiting for your valuable replies....

Regards,

Vijaya Kumar n

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4 Replies

Sanat kumar (Chartered Accountant) (265 Points)
Replied 04 August 2011

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

Aakanksha (CA Final Student) (56 Points)
Replied 05 August 2011

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%

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SUNIL GARG (CHARTERED ACCOUNTANT) (175 Points)
Replied 05 August 2011

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

CA Kishore Tallam (Sr Manager - Corporate Account) (2716 Points)
Replied 20 March 2014

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)??

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