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.