income-tax

Dividend Taxation

Understanding tax on dividends in India including DDT, individual taxation, and reporting.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views

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.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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