13 November 2013
Dividend Income received from Indian Companies , on which dividend distribution tax has been paid by the company, is an income exempt from tax.
Dividends are normally exempt from income tax. However, only dividends of the nature referred to in Section 115-O is exempt from tax in the hands of the recipient.
Section 115-O does not include dividend from a foreign company and dividends of the nature referred to in Section 2(22)(e).