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Section - 115BBDA - Rationalization of taxation of income by way of dividend -

 

Vide Finance Act, 2016 a provision was made for taxing those individuals, Hindu Undivided Families or Firms whose income includes income by way of dividend aggregating more than Rs.10 Lakhs. Such persons are to be taxed at the rate of 10% of the amount of dividend exceeding Rs.10 Lakhs. The scope of this section is proposed to be extended by making it applicable to all residents except domestic companies, funds or trusts, universities, educational institutions or medical institutions whose income is exempt from tax. The amendment will bring within the scope of taxation all private trusts which have made investment in shares and deriving dividend therefrom exceeding Rs.10 Lakhs.

 

The amendment will be effective from 1st April, 2018 in relation to assessment year 2018-19 onwards.


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