Dividend taxation: excess domestic dividends subject to a flat additional tax and counted alongside regular income.

Section 115BBDA taxes dividends from domestic companies where aggregate dividend income of a resident individual, HUF or firm exceeds ten lakh rupees by charging tax at ten per cent on the aggregate excess and adding the tax that would be payable if total income were reduced by the dividend amount; no deduction, allowance or set off of loss is permitted in computing such dividend income and "dividends" is as defined in section 2(22) excluding sub-clause (e).

---

---

---