Answer ( 1 )

  1. ​​• As per section 115BBDA, dividend received in excess of Rs. 10,00,000 is taxable in the hands of shareholders in case following conditions are fulfilled –
    ○ Person receiving dividend is a resident Individual or HUF or firm

    ○ Dividend received from a domestic company is in excess of Rs. 10,00,000

    • In case above mentioned conditions are fulfilled, dividend in excess of Rs. 10,00,000 is taxable at the rate of 10% .

    • Section 115BBDA is applicable from AY 2017-2018.

    • Section 115BBDA is not applicable on dividend specified in section 2(22)(e). [loan/advance paid to shareholder holding more than 10% voting rights OR to a business entity in which such shareholder has substantial interest]

    • W.e.f AY 2018-2019, Section 115BBDA would be applicable to all persons except following –

    ○ Domestic company

    ○ Charitable Trust or institution registered under Income Tax Act

    ○ Fund, Instituition, Trust, University, Educational Institution, Hospital, Other medical institution referred to in Section 10(23C) of the Income Tax Act.

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