Tax on dividend above 1000000

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Uday Vartak (Querist)
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17 July 2017 1 For FY1617 dividend above 1000000 is taxed at 10%. Is it applicable for dividend declared on mutual funds ?
2. I am now retired and my source of income is only from dividends. For FY1617, I got Rs. 1200000 dividend. So what is my tax liability? Is it NIL or 200000.

Anand

Anand (Expert)
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18 July 2017 1. No it is not applicable to dividend declared on Mutual Funds
2. If your only income is Dividend from companies of Rs. 12,00,000/- Then you will have to offer Rs. 2,00,000/- as Income from Other Sources. This will be taxed u/s 115BBDA at 10% on Rs. 2,00,000/-. There will be no deduction allowed against this and no set-off of losses permitted.
If this is your only income then your tax will be Rs.20,000/-.
Since your total income is below Rs. 3,50,000/- you are eligible for rebate from tax of upto Rs. 5,000/- u/s 87A
Therefore your tax will be considered at Rs. 15,000/-. Add Cess to this and your final tax liability is Rs. 15,450/-