What is Taxation of Dividends in hands of Shareholders?
Nexa Consultancy | Startup & Finance Glossary
Since the abolition of Dividend Distribution Tax (DDT), dividends are now taxed in the hands of the shareholders at their applicable income tax slab rates.
Startup Example: A profitable startup declares a dividend. A founder who receives this dividend and is in the 30% tax bracket will have to pay tax on this dividend income accordingly.
Our tax advisory services cover personal tax planning for founders.