alleryStart learning →Since DDT was abolished, how does India tax dividend income?
AExempt for all
BTaxed at slab rates
CTaxed via company
DFlat 30% by company
Answer & Solution
Correct answer: B. Taxed at slab rates
The government taxes dividend in the hands of the investor according to income tax slab rates.
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Related questions
Which limits can restrict how much a firm may distribute as dividend?Why might management avoid changing dividend policy abruptly?Which alternative to cash dividends may a firm choose when surplus cash exists?Which type of shareholder usually prefers earnings to be retained?With no NPV-positive projects and surplus cash, what should management do?Management knowing more than the market is called what?If dividends bear higher tax than gains, raising them does what to value?Per the Modigliani-Miller theorem, dividend policy has what effect on firm value?