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What exactly is the exemption in Section 10(34)/10(35) under the Income Tax Act?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 preetham asked almost 3 years ago

What exactly is the exemption in Section 10(34)/10(35) under the Income Tax Act?

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2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ashika answered over 2 years ago

As per Finance Act, 2003 from the Assessment Year 2004-05, the dividend income from shares and income from units of Mutual Funds covered U/s 10(23D) would be completely exempt from income tax. The relevant sections areas follows 1.For dividend income from Indian company : Fully exempt from payment of income tax by the receiver as per section 10(34) as the company already paid the tax on its distributable profits.This exemption is allowed inorder to avoid double taxation. (but if the dividend is received from a foreign company the receiver is liable to pay tax.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Vinod.P answered almost 3 years ago

Dear Preetham As per Finance Act, 2003 from the Assessment Year 2004-05, the dividend income from shares and income from units of Mutual Funds covered U/s 10(23D) would be completely exempt from income tax. The relevant sections areas follows 1.For dividend income from Indian company : Fully exempt from payment of income tax by the receiver as per section 10(34) as the company already paid the tax on its distributable profits.This exemption is allowed inorder to avoid double taxation. (but if the dividend is received from a foreign company the receiver is liable to pay tax. Income from Mutual funds are exempt from Tax u/s 10(35) Kind Regards Vinod.P

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