TaxTMI 
TaxTMI 
what is the tax rate on dividend earned by NRI? whether they get basic exemption against dividend income?
Income Tax on Dividend for NRI
27 Aug 2025 
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Dividend taxation for NRIs allows TDS, DTAA-based relief, and possible basic exemption benefit in suitable cases.
Dividend income received by a non-resident Indian from shares of Indian companies is generally taxable in India. Tax is commonly deducted at source at 20% under section 195, though a lower rate may apply where DTAA benefits are available and the prescribed documents are furnished. The basic exemption limit may be available in appropriate cases where the dividend is taxed at normal slab rates and total income remains below the threshold limit. (AI Summary)
Dividend income received by a non-resident Indian from shares of Indian companies is generally taxable in India. Tax is commonly deducted at source at 20% under section 195, though a lower rate may apply where DTAA benefits are available and the prescribed documents are furnished. The basic exemption limit may be available in appropriate cases where the dividend is taxed at normal slab rates and total income remains below the threshold limit. (AI Summary)