Dividend income more than 10 lakhs taxable ?






I have investments in UTI’s Master shares on which I earned a dividend of Rs 14 lakh for 2018-19. Am I required to pay 10% tax on the dividend because it exceeds Rs 10 lakh?

Answer :

No, Dividend is Tax free as it is received against Mutual Fund.

However,if aggregate dividend received by an individual/ HUF from companies exceeds Rs. 10,00,000, it is liable to pay tax at the rate of 10% on dividend income received in excess of Rs. 10 lakh.

Section 115BBDA applies only on dividend income received from domestic companies under Section 10(34) and excludes dividend income received from mutual funds under Section 10(35).









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