Section 393(1); Table [For Payment to Resident]- Dividend

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.... Any dividend (including dividend on preference shares) declared Any domestic company 10% Nil Scope of the provision This clause applies to any dividend declared by a domestic company, including- • dividend on equity shares; and • dividend on preference shares Person responsible to deduct tax The obligation to deduct tax is cast upon ev....

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....ails over the general rule of deduction at the time of credit or payment under Section 393(1). Practical distinction • Applies to all dividends, including preference share dividends, declared by a domestic company. • The domestic company is responsible for deducting tax. • TDS is deductible at a fixed rate of 10%. • No threshold limit ....