Up to 31-03-2020, a domestic company was liable to pay dividend distribution tax (DDT) on the dividend declared, distributed or paid to the shareholders. As dividend was subjected to DDT in the hands of the company, shareholders were exempt from paying tax on such dividend income. However, if the dividend received by a shareholder during the year exceeds Rs. 10 lakh, such excess amount was chargeable to tax at the rate of 10% under Section 115BBDA.Up to 31-03-2020, a domestic company was liable to pay dividend distribution tax (DDT) on the dividend declared, distributed or paid to the shareholders. As dividend was subjected to DDT in the hands of the company, shareholders were exempt from paying tax on such dividend income. However, if the dividend received by a shareholder during the year exceeds Rs. 10 lakh, such excess amount was chargeable to tax at the rate of 10% under Section 115BBDA.taxmann.com Latest ArticlesRead More
How to compute advance tax if dividend income is earned during the year?
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- Post published:February 19, 2021
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