If an individual has dividend income of rs.10Lakh and interest income of rs.1Lakh.
Whether dividend income will be included in gross income to calculate tax slab or full amount will be tax free as income excluding dividend is below taxable limit?
Tax liability will arise over aggregate income, including dividend.
The investors and shareholders from 1st April 2020 are liable to tax on dividend income as applicable slab rates.
A domestic company is to deduct tax at the rate of 10% on payment of dividends to its resident shareholders when such dividend exceeds ₹ 5,000.
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