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Dividend Income
Dividend earned from PR Ltd. an indian company, Is it taxable in hands of all OR, NOR or NR ?
Replies (7)
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.
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.
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.
Dividend income is exempted in hands of assessee no matter he is OR,NOR or NRI
Yes dividend received beyond 10 lacs is taxable irrespective of payment of DDT.
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