TDS on dividend payments for certain non residents now follows a tiered rate structure based on aggregate receipts.

The Finance Act, 2020 is amended to introduce a provision applying a tiered withholding regime for deduction on income by way of dividend paid to specified non resident entities, with higher withholding where aggregate dividend receipts exceed prescribed thresholds. The amendment also amends subsection (9) provisos to substitute phrases throughout so that exclusions and inclusions expressly read "income by way of dividend or income," thereby ensuring dividend income is specifically captured.

---

---

---