…………. is exempted from income tax.

Question

Quizplus · Accepted Answer

Dividend income from an Indian company is exempt from income tax for the receiver because the company distributing the dividend has already paid a Dividend Distribution Tax (DDT) on the amount before it is distributed to shareholders. However, it's important to note that the tax laws are subject to change, and as of the financial year 2020-21, the DDT has been abolished, and dividends are taxable in the hands of the individual as per their applicable slab rates. This explanation is based on the previous tax regime where DDT was applicable.

…………. Is Exempted from Income Tax