Rationalization of taxation of income by way of dividend :
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. [Clause 44]
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