Tax on certain dividends received from domestic companies (Section 115BBDA)


In the Finance Act, 2016 new section 115BBDA was introduced to levy tax on certain dividend income received by a resident individual, HUF and firms aggregating Rs.10 lakhs at the rate of 10%. However the act has not clarified about the payment of advance tax on the same.

Suggestion by ICAI

As the timing of receipt of dividend is uncertain and estimation of the same is also not possible, it is suggested that exemption from advance tax provisions may be given for such Dividend Income taxable under section 115BBDA.

Further, it is suggested that full and complete advance tax in this respect may be permitted to be paid by the 31st march of the previous year.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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  1. Samidh Mukhopadhyay says:

    Kindly advise if 10% tax is to be paid on dividend received beyond Rs 10 lakhs from-

    a. Mutual Fund
    b. Reit Fund
    c.PMS system
    d.Investment in direct equity

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