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TAX ON DIVIDEND
INCOME
BY CS ROHIT KUMAR
Follow My Blog: www.decoding.co.in
TILL FY20
● DDT rate was 15% plus applicable surcharge so effective
rate 20.6%
● Not subject to tax in the hands of shareholders except
certain resident taxpayer u/s 115 BBDA [rate was 10%]
CHANGES IN FINANCE ACT 2020
● Now Dividend income shall be taxable in the hands of
Shareholders
RATIONALE
● Effective rate was 45% , so India was losing its
competitive edge as compared to other countries
BENEFICIARIES
● Foreign companies and NRI
● As per tax treaties rate between 5% to 15%
WHY DOUBLE
TAXATION?
THANK YOU!
SUBSCRIBE TO THIS CHANNEL FOR LATEST
NOTIFICATION TO UNDERSTAND
INDIAN LAWS
Join WhatsApp or Telegram Group-links given in
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Tax on dividend Now