Tax on Special Dividend

S.K.Agrawal (Others) (114 Points)

29 January 2022  

Domestic Companies generally declare Interim and Final dividend on Shares. But sometimes declare "Special Dividend" also @ some percent and pay the amount in INR. How are these Special Dividends taxed in the hands of shareholders, and which date is taken as dividend date for taxation purpose, i.e Announcement date, payment date or Ex-Payment date, etc.

Please clarify, if possible with some example.