29 October 2010
is dividend recieved from state bank of india exempt or taxable..?? got a confusion because some places it is said that it is registered under the banking act so it is not an indian company and is not allowed as a deduction u/s 10(34). plz solve the query.
As per 115O . it is applicable on domestoc company. sec 2(22A) say domestic company means an indian company, or any other company which in respect of its income liable to tax under this act, has made the prescribed arrangements for the declaration and payment, within india, of the dividends payable out of such income.
SBI is covered under domestic company , so dividend tax applicable on SBI also.
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