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Dividend Income

Neha Mundhra (1 Points)

02 May 2017

Dividend earned from PR Ltd. an indian company, Is it taxable in hands of all OR, NOR or NR ?

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(Guest)

divident received in not taxable

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Mopidevi Bharadwaja (Article assisstant) (167 Points)
Replied 02 May 2017

Dividend earned from stocks is exempt from Income tax in India irrespective of the residential status of the assessee. But all income, whether exempt or not, is to be declared in returns.

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(Guest)

COMPANY ALREADY PAID TAX ON DIVEDENT

SO IN THE HANDS OF INVESTERS IT IS BECOME TAX FREE

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CA sachin chaurasiya (Accounts & Finnance) (32 Points)
Replied 02 May 2017

IF Dividend distribution tax is paid, then such dividend is exempt in the hands of the ShareHolders either it be OR,NOR,NR . However, if a payment is deemed as Dividend u/s 2(22)(e), then

(1.) DDT is not applicable under 115-O.

(2) COnsequently, it is taxable in the hands of the shareholders

(3) Also, the company is liable to deduct tax on such deemed dividend.

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Vaishnavi Ganesh (Chartered Accountant) (861 Points)
Replied 03 May 2017

Dividend received from an Indian company is not taxable of DDT had been paid by the company. However if total dividend received by a person from various companies exceeds rs.10 Lakhs, dividends earned beyond 10 lakh shall be subject to tax regardless of DDT been paid by the company.

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