Posted October 16, 2013 by advocateguru in Learning Centre

Personal Taxation of Dividend Income

Dividend declared, distributed or paid on or after June 1, 1997 but before April 1 2002 or after March 31, 2003 is subject to dividend tax. It is a final tax payment by a domestic company in respect of the amount declared, distributed or paid as dividend. In respect of tax so paid no credit is available to the company paying tax on the recipient of dividend or to any other person. BY virtue of section 10(34) dividend income (in respect of which tax is charged under section 115-O will be exempt in the hands of recipient.