New Tax Code Highlights: Book Profits, Dividends, and Branch Profits Taxed Under Sections 103, 109, and 111

The Direct Taxes Code, 2010 outlines various tax rates in its Second Schedule. A 20% tax is imposed on book profits under section 103. Dividends distributed by domestic companies are taxed at 15% as per section 109. Income distributed by mutual funds or life insurers to equity-oriented holders is taxed at 5% under section 110. Branch profits are taxed at 15% according to section 111. For net wealth exceeding one crore rupees, a 1% tax is levied on the excess amount, while wealth below that threshold incurs no tax, as specified in section 112.

---

---

---