Dividend Taxation
Dividend Distribution Tax#
- DDT abolished from April 2020
- Dividends taxed in hands of shareholders
Tax Rates#
- Below ₹10 lakh: Slab rate
- Above ₹10 lakh: 10%
Reporting#
- Show in ITR
- Verify with Form 26AS
- DDT already paid credit
Dividend from Mutual Funds#
- Debt funds: Taxed as per slab
- Equity funds: 10% above ₹10 lakh
Conclusion#
Dividends are now taxable as regular income.