Tax on high-value dividends imposes a tax at a specified rate and disallows deductions for such dividend income.

Section 115BBDA charges dividend income from domestic companies received by resident individuals, HUFs and firms that exceeds a specified threshold to tax by requiring an aggregate tax: the tax on such dividend income at the prescribed rate plus the tax that would be payable on the assessee's remaining income after excluding the dividend amount; no deduction, allowance or set off of loss is permitted in computing such dividend income.

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