Deduction Allowable u/s 57 ..

Dividend received from domestic company shall be exempt from tax under Section 10(34) if it is chargeable to dividend distribution tax under Section 115-O. However, as per section 115BBDA (as inserted by Finance Act, 2016), in the case of resident individual/HUF/firm, dividend shall be chargeable to tax at the rate of 10% if aggregate amount of dividend received during the year exceeds Rs. 10,00,000.

dividend received from domestic company is exempt subject to payment of DDT. However it will be taxable if dividend income exceeds 1000000. Further as per section 14A any expenditure incurred for earning exempt income will not be allowed as deduction.