Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Dividend received by domestic company

Siddharth Parmar (ipcc student) (61 Points)

17 October 2019

Any dividend received by a domestic company taxability ???

Reply
Follow
Share

6 Replies

Meet Parekh (76 Points)
Replied 17 October 2019

No any Indian company's Dividend Income is not Taxable in income Tax

Upgrade to CAclubindia Pro. Subscribe Now!

Suresh Thiyagarajan (Student) (3986 Points)
Replied 17 October 2019

1. Any dividend received from a domestic company will be exempted from payment of tax u/s 10(34).
2. However, the above dividend will be exempt subject to sec 115BBDA. Sec 115BBDA tax dividend received from domestic companies in excess of Rs. 10 lakhs during the year.
Please correct me if the above solution has an alternative view.

Ashok Kumar (CA qualified) (389 Points)
Replied 17 October 2019

Dividend received from Domestic Company in excess of Rs. 10 lakhs in a year is taxable in case of all persons, except received by another domestic company or tax exempt institutions (10(23C)(iv),(v),(vi),(via), 12A)

1 Like

sabyasachi mukherjee (27593 Points)
Replied 18 October 2019

ANY DIVIDEND RECEIVED BY IN EXCESS OF RS.10 LACS IS TAXABLE IN A FINANCIAL YEAR.

Kapadia Pravin (17259 Points)
Replied 18 October 2019

@ Siddharth Parmar
Any dividend amount received by a domestic company is EXEMPT under 10(34)

Section 115BBDA is not applicable to Domestic Companies.

I hope Suresh ji will concur with this.