Individual tax on foreign dividend income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2013 Hi,

I am a resident income. I work in a software company as Manager and have total salary income of INR400000/-. I hold some shares of a company in Singapore. For FY 2012-2013 I received a dividend payment of INR65000/- from that company, in February 2013.

Do I need to pay tax on this dividend income? If yes, at what rate?

Please help.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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03 May 2013 Yes if the dividend is received from Foreign Co. then you need to pay tax

The tax rate is normal rate applicable to you

i.e since your Salary Income is Rs.400000/-

and Dividend Income is Rs.65000/- (taxable under the head Other Sources)

without considering Deductions & Exempions

your tax on total Income of Rs.465000/- would be

Rs.27295/- (including Cess & SHEC)