Tax Treatment Of Dividend Received From A Foreign Company

1. Meaning of dividend 2. Head of taxability and applicable tax rate 3. Relief from double taxation 4. Concessional rate of tax to dividends received from foreign specified company

Dividend received from an Indian company which has suffered dividend distribution tax is exempt from tax under section 10(34). However, as per section 115BBDA (as inserted by Finance Act, 2016), in the case of resident individual/HUF/firm, dividend shall be chargeable to tax at the rate of 10% if aggregate amount of dividend received from a domestic company during the year exceeds Rs. 10,00,000. Exemption under section 10(34) is granted to dividend received from an Indian company and not to a dividend received from a foreign company. Thus, dividend from a foreign company received by an Indian resident is taxable. In this part you can gain knowledge about tax treatment of dividend received from a foreign company.