TDS on Dividend Income - Budget 2020
Divedend income was tax free up to Rs. 10 Lakhs. In the budget 2020-21 the dividend income will be taxed. Companies paying dividend will have to deduct tax @10% if dividend amount is Rs.5000/- and above in a financial year.
This will make life of Senior Citizens difficult as they will have to submit Form 15H to a number of companies. Companies will start deducting 10% TDS to be on safe side even if total dividend payout in a year may be less than Rs.5000/-, otherwise they will have to monitor dividend payout to lakhs/crores of shareholders resulting in a huge load of additional accounting.
We request government to consider exempting Senior Citizens from TDS on Dividend income up to Rs. One Lakh.
We request Local Circles to take up this issue with Ministry of Finance, FM & PM to help Senior Citizens. more
This will make life of Senior Citizens difficult as they will have to submit Form 15H to a number of companies. Companies will start deducting 10% TDS to be on safe side even if total dividend payout in a year may be less than Rs.5000/-, otherwise they will have to monitor dividend payout to lakhs/crores of shareholders resulting in a huge load of additional accounting.
We request government to consider exempting Senior Citizens from TDS on Dividend income up to Rs. One Lakh.
We request Local Circles to take up this issue with Ministry of Finance, FM & PM to help Senior Citizens. more
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A site can be developed by Senior Citizens for presentation to PM/FM regarding out Grieviences towards taxation.All senior citizens can vote for it.This can be sent to PM/FM. more
Feb 26
yes it is the need of the day more
Feb 26
1. Taxing dividend income is a mighty blow to millions of citizens, especially senior citizens/pensioners, who had parked lot of money into MFs, to get assured tax-free income to meet their living expenses including medical costs. Now, there may be large-scale redemption from MFs, which will destabilise the companies & industries too much. This will lead to collapse of economy & increased unemployment as cascading effects. 2. If such taxing is unavoidable, option must be given to MFs to DDTs, similar to the option given for tax-payers (old scales with deductions vs new scales without deductions). 3. If budget proposals stick, will the MFs pass on the DDTs saved to MF investors as increased dividends ? more
Feb 03
I think, the issue is different than the TDS on dividend income. The dividend distribution tax has been withdrawn now as per my understanding. Earlier the dividend one used to get was after deduction of dividend distribution tax which was @ 15.6%. This means that the companies will now pay the dividend without deduction of tax and now the individual will have to pay tax on the dividend received by him as per his slab. Exemption of dividend income upto Rs one lakh is too low for senior citizens and I think this limit should be higher than that. more
Feb 03
sir, what I have requested is exemption from TDS for senior Citizens like it is provided for bank interest. Tax will have to be paid as per tax slab applicable. There was no tax up to Rs.10 lakh of dividend income till 31st March 2020. Amount received above Rs.10 lakhs was charged tax @11.4% including surcharge. more
Feb 03
I fully endorse Mr. Mohit Pande's view and request Hon'ble PM / FM to consider exempting senior citizens from TDS on Dividend Income upto Rs. 2.50 lakhs in a fiscal. more
Feb 03
