Rate of TDS on Dividend Income under section 194 of the Income Tax Act

NATURE OF PAYMENT

Dividend

EXCEPTIONS:

No tax deducted in the following cases-

  • If the dividend is covered u/s115-O i.e the payer (domestic company) is liable to pay corporate dividend tax [in other words, the dividend covered u/s 2(22) 9a/(b)/(c)/(d)]
  • If the dividend is covered u/s 2(22)(e0 and the following conditions are satisfied-
    • Payee is an individual
    • Payer is a widely-held company
    • Debenture are listed on a recognized stock exchange in India
    • Payment is made by an “A/c payee” cheque
    • The amount of interest payable during a financial year does not exceeds Rs.2500/-
  • Dividend payable to LIC, General Insurance Companies and any other Insurer.

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