Budget 2017-18

Budget 2017-18-Rationalization of taxation of dividend income. Provisions of section 115BBDA not to apply to domestic company and certain funds, trusts etc

Budget 2017-18-Rationalization of taxation of dividend income. Provisions of section 115BBDA not to apply to domestic company and certain funds, trusts etc

Budget 2017-18-Rationalization of taxation of dividend income

Under the existing provisions of section 115BBDA, income by way of dividend in excess of Rs. 10 lakh is chargeable to tax at the rate of 10% on gross basis in case of a resident individual, Hindu undivided family or firm.

With a view to ensure horizontal equity among all categories of tax payers deriving income from dividend, it is proposed to amend section 115BBDA so as to provide that the provisions of said section shall be applicable to all resident assessees except domestic company and certain funds, trusts, institutions, etc.

This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to the assessment year 2018-19 and subsequent years.

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