Taxability of Dividend in the new Tax Regime



Quick Summary
From 1 April 2020, the dividend distribution tax (DDT) has been abolished. Dividends are now taxed directly in the hands of shareholders according to their applicable income tax rates or beneficial tax treaty rates. Dividends received after 1 April 2020, on which DDT was already paid, remain exempt to prevent double taxation. New provisions also aim to eliminate cascading tax effects for companies distributing dividends.

The dividend distribution tax has been abolished from 1 April 2020. Dividend to be taxed in the hands of shareholders at the rates applicable as per Income Tax Act, 1961 (the Act), or as per tax treaty or Act whichever is more beneficial (incase of NR shareholders). However, dividends received by a shareholder on or after 1st April 2020, on which DDT has been paid before 1st April 2020, is exempt in the hands of a shareholder to remove double taxation. Taxability of dividends in the hands of
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1999
(Excl. of GST ₹359)

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3499
(Excl. of GST ₹629)

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