TaxTMI 
TaxTMI 
Taxation of Dividend and Deemed Dividend
X X X X Extracts X X X X
X X X X Extracts X X X X
....omestic company was required to pay tax U/s 115-O as Dividend Distribution Tax.] * In case of Dividend received from Foreign Company - As per Section 115BBD, Dividend Received by Indian Company from Foreign Company in which it has holding of 26% or more of equity share capital shall be taxable @15% in hands of Indian Company. No other expenses is allowed against dividend. The provisions of Section 115BBD shall not apply to any assessment year beginning on or after the 1st day of April, 2023 Deemed Dividend :- Section 2(22)(a) - Distribution of accumulated profits Any Distribution of Assets by a company to its shareholders to the extent the company possesses accumulated profit. Section 2(22)(b) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 68 of the Companies Act, 2013. [ Inserted vide Finance (No. 2) Act, 2024 ] Applicable Tax Rates on Dividend Taxpayer Nature of Dividend Rate of Tax Resident Dividend received from Domestic Co. Slab Rate NRI Dividend on GDR of Indian Co./PSU (purchased in foreign currency) 10% NRI Dividend on Shares of Indian Co. (purchased in foreign currency) 20% NRI Any other Dividend Income 20% FPI Dividend on securities other than 115AB 20% Investment Division of Offshore Banking Unit Dividend on securities other than 115AB 10% Deduction to Companies in Respect of Certain Inter Corporate Dividend Section....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2: - Add Health and Education Cess - 4% of Income Tax Note 3: - Dividend is exempt in the hands of shareholder u/s 10(34) Note 4 - The provision of section 115QA(1) shall not apply to such buy-back of shares (being the shares listed on a recognised stock exchange).[ Inserted vide Taxation Laws (Amendment) Act, 2019 w.e.f. 05-07-2019 ] Note 5 - The provision of section 115QA(1) shall not apply in respect of any buy-back of shares, that takes place on or after the 1st day of October, 2024.[ Inserted vide Finance (No. 2) Act, 2024 ] =============================== Rates of Dividend Tax Rates for the Financial Year 2017-18 Section 115O 1. Deemed Dividend u/s 2(22)(e) = NA 2. Dividend Other th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... =============================== Rates of Dividend Tax Rates for the Financial Year 2014 - 2015 Section 115O 1. Deemed Dividend u/s 2(22)(e) = NA 2. Dividend Other than deemed dividend = 15% [Reverse Calculation w.e.f. 1.10.2014] Section 115QA 3. Distributed income of domestic company for buy-back of unlisted shares = 20% Section 115TA 4. Distribution by securitization trust to investors - 25% if the recipient is individual / HUF and 30% if recipient is any other person Notes: Note 1: - Add Surcharge - Surcharge is 10% of income-tax in case of domestic companies Note 2: - Add Education Cess - E. Cess is 2% of Income Tax plus surcharge Note 3: - Add Secondary and Higher Education....