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One advice for investors earning dividend income – Unlearn, Then relearn!

February 12, 2020[2020] 114 211 (Article)
In the current regime, if a shareholder gets dividend from a domestic company then he shall not be liable to pay any tax on such dividend as it is exempt from tax under section 10(34) of the Act. However, in such cases, the domestic company is liable to pay a Dividend Distribution Tax (DDT) under section 115-O. The Finance Bill, 2020 proposes to abolish the DDT and move to the classical system of taxation wherein dividends are taxed in the hands of the investors.
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