Dividend withholding requires domestic companies to deduct tax before distribution, covering equity and preference share dividends without threshold.

Dividend declared by a domestic company, including equity-share and preference-share dividends, is subject to tax deduction at source at 10%. The domestic company must deduct tax before distributing or paying the dividend to a shareholder. No minimum payment threshold applies, so every such dividend payment is subject to deduction, subject to the specified no-deduction exception. The specific requirement to deduct before distribution or payment governs dividend withholding.

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