{"id":11898,"date":"2026-02-24T12:48:24","date_gmt":"2026-02-24T12:48:24","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=11898"},"modified":"2026-07-03T17:37:56","modified_gmt":"2026-07-03T12:07:56","slug":"what-is-corporate-dividend-tax","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/","title":{"rendered":"What Is Corporate Dividend Tax? Meaning, Rules &amp; Tax Impact"},"content":{"rendered":"\n<p>Corporate Dividend Tax refers to the taxation of corporate profits distributed to shareholders. In India, the former <strong>Dividend Distribution Tax (DDT)<\/strong> paid by companies was abolished in 2020. Now, dividends are treated as taxable income in the <strong>hands of the investor<\/strong>, taxed directly at their <strong>applicable income tax slab rates<\/strong><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#What_was_the_Corporate_Dividend_Tax\" >What was the Corporate Dividend Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#What_Changed_After_April_1_2020\" >What Changed After April 1, 2020?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#Is_Deduction_of_%E2%80%9CExpenses%E2%80%9D_Allowed_from_Dividend_Income\" >Is Deduction of \u201cExpenses\u201d Allowed from Dividend Income?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#To_Conclude_the_Corporate_Dividend_Tax_Was_Abolished_in_FY_2020-21\" >To Conclude, the Corporate Dividend Tax Was Abolished in FY 2020-21<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#Citation\" >Citation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#What_Is_Corporate_Dividend_Tax_FAQs\" >What Is Corporate Dividend Tax? FAQs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#Ready_to_Invest\" >Ready to Invest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/guide\/what-is-corporate-dividend-tax\/#Disclaimer\" >Disclaimer:&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h3 class=\"wp-block-heading\">Current Rules and Tax Impact<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Abolition of DDT:<\/strong> Prior to April 1, 2020, domestic companies paid DDT (under Section 115-O) at roughly 15% before distributing earnings. This system is no longer in effect. <\/li>\n\n\n\n<li><strong>Taxability:<\/strong> Dividend earnings are added to your total income and taxed according to your individual income tax slab. This can lead to a higher overall tax impact for high-net-worth individuals. <\/li>\n\n\n\n<li><strong>TDS Threshold:<\/strong> Companies deduct a <strong>10% Tax Deducted at Source (TDS)<\/strong> on dividend payouts exceeding \u20b95,000 in a financial year. <\/li>\n\n\n\n<li><strong>Non-Residents:<\/strong> Dividends paid to non-resident shareholders are generally taxable at 20% (or the applicable <strong>Double Taxation Avoidance Agreement<\/strong> treaty rate). <\/li>\n<\/ul>\n\n\n\n<p><i><span style=\"font-weight: 400;\">Are you unsure about how dividends are taxed today? <\/span><\/i><span style=\"font-weight: 400;\">Read this article to first learn what the corporate dividend tax wasand then see how dividends are taxed in FY 2025-26. Next, understand whether any deduction is allowed from dividend income.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_was_the_Corporate_Dividend_Tax\"><\/span><span style=\"font-weight: 400;\">What was the Corporate Dividend Tax<\/span><span style=\"font-weight: 400;\">?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Corporate dividend tax (also known as Dividend Distribution Tax [DDT)] was a tax paid by an Indian domestic company (under Section 115-O of the Income Tax Act) on the profits it distributed as dividends to shareholders.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Up to FY 2019-20 (AY 2020-21), if a shareholder received a dividend, it was exempt from tax in their hands under Section 10(34). So, under the old system, the burden of paying income tax on the dividend income was on the company and not on the investor.<\/span><\/p>\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Changed_After_April_1_2020\"><\/span><span style=\"font-weight: 400;\">What Changed After April 1, 2020?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The Finance Act, 2020, <\/span><a rel=\"nofollow\" href=\"https:\/\/incometaxindia.gov.in\/Tutorials\/Tax%20treatment%20of%20dividend%20received.pdf\"><span style=\"font-weight: 400;\">abolished DDT from April 1, 2020<\/span><\/a><span style=\"font-weight: 400;\">. Since then, Indian domestic companies are not legally required to pay a corporate dividend tax. Instead, the distributed dividend is taxed in the hands of shareholders at their applicable slab rates.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Along with this change, the government also introduced <\/span><a href=\"https:\/\/goldenpi.com\/blog\/fixed-deposit\/how-much-tax-is-deducted-on-fd-interest\/\"><span style=\"font-weight: 400;\">Tax Deducted at Source<\/span><\/a><span style=\"font-weight: 400;\"> (TDS) on dividend payments. If the total dividend you receive from a company or mutual fund exceeds \u20b910,000 (earlier threshold was \u20b95,000 up to FY 2024\u201325), the company must deduct TDS @ 10%. For more clarity, let\u2019s study an example:<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Example<\/span><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">Mr. Rahul receives \u20b922,000 as a dividend from an Indian company on February 13, 2026. Now, since \u20b922,000 is more than \u20b910,000, the company will deduct TDS at 10%.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">A TDS amount of \u20b92,200 (\u20b922,000 \u00d7 10%) will be deducted, and Rahul will receive \u20b919,800 (\u20b922,000 \u2212 \u20b92,200).<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Deduction_of_%E2%80%9CExpenses%E2%80%9D_Allowed_from_Dividend_Income\"><\/span><span style=\"font-weight: 400;\">Is Deduction of \u201cExpenses\u201d Allowed from Dividend Income?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">For FY 2025-26 (AY 2026-27), you can claim a deduction for \u201cinterest expenses\u201d incurred to earn dividend income (under Section 57). This deduction is limited to 20% of the gross dividend income received.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Any other expense (say, brokerage, commission, or collection charges) is not deductible against dividend income. For example:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Let\u2019s say you took a loan of \u20b940,000 @ 12% to invest in shares.\u00a0<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Thus, your annual interest expense is \u20b94,800 (\u20b940,000 x 12%).<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Assume that your dividend income for the year is \u20b910,000 (before TDS).\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Now, the maximum deduction allowed is \u20b92,000 (20% of \u20b910,000), even though your actual interest expense is \u20b94,800.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, after the latest changes introduced in the <\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-changed-in-the-bond-market-after-the-budget-2026\/\"><span style=\"font-weight: 400;\">Union Budget 2026<\/span><\/a><span style=\"font-weight: 400;\">, this interest deduction has now been removed. From FY 2026-27 onwards, no deduction will be allowed against dividend income (including interest expense). As a result, 100% of the dividend amount received will be taxable in the hands of the investor.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Latest Bond Updates:<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><a href=\"https:\/\/goldenpi.com\/blog\/guide\/bond-covenants\/\" aria-label=\"Understanding Bond Covenants: The Fine Print That Determines Risk\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20135540\/Bond-Covenants-1024x576.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"Bond Covenants\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20135540\/Bond-Covenants-1024x576.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20135540\/Bond-Covenants-300x169.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20135540\/Bond-Covenants-768x432.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20135540\/Bond-Covenants-1536x864.jpg 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20135540\/Bond-Covenants.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/guide\/bond-covenants\/\">Understanding Bond Covenants: The Fine Print That Determines Risk<\/a><\/li>\n<li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><a href=\"https:\/\/goldenpi.com\/blog\/gold-bonds\/gold-etfs-vs-sovereign-gold-bonds-vs-physical-gold\/\" aria-label=\"Gold ETFs vs. Sovereign Gold Bonds vs. Physical Gold: A Definitive Guide\u00a0\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20114204\/Gold-ETFs-vs-Sovereigns-Gold-bonds-vs-Physical-Gold-1-1024x576.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"Gold ETFs vs. Sovereign Gold Bonds vs. Physical Gold (1)\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20114204\/Gold-ETFs-vs-Sovereigns-Gold-bonds-vs-Physical-Gold-1-1024x576.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20114204\/Gold-ETFs-vs-Sovereigns-Gold-bonds-vs-Physical-Gold-1-300x169.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20114204\/Gold-ETFs-vs-Sovereigns-Gold-bonds-vs-Physical-Gold-1-768x432.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20114204\/Gold-ETFs-vs-Sovereigns-Gold-bonds-vs-Physical-Gold-1-1536x864.jpg 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/20114204\/Gold-ETFs-vs-Sovereigns-Gold-bonds-vs-Physical-Gold-1.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/gold-bonds\/gold-etfs-vs-sovereign-gold-bonds-vs-physical-gold\/\">Gold ETFs vs. Sovereign Gold Bonds vs. Physical Gold: A Definitive Guide\u00a0<\/a><\/li>\n<li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><a href=\"https:\/\/goldenpi.com\/blog\/fixed-deposit\/bonds-vs-fixed-deposits-2026\/\" aria-label=\"Bonds vs Fixed Deposits 2026: Tax and Liquidity Comparison for Indian Investors\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/18175049\/Bond-vs-Fixed-Deposits-1024x576.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"Bond vs Fixed Deposits\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/18175049\/Bond-vs-Fixed-Deposits-1024x576.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/18175049\/Bond-vs-Fixed-Deposits-300x169.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/18175049\/Bond-vs-Fixed-Deposits-768x432.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/18175049\/Bond-vs-Fixed-Deposits-1536x864.jpg 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/07\/18175049\/Bond-vs-Fixed-Deposits.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/fixed-deposit\/bonds-vs-fixed-deposits-2026\/\">Bonds vs Fixed Deposits 2026: Tax and Liquidity Comparison for Indian Investors<\/a><\/li>\n<\/ul>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_Conclude_the_Corporate_Dividend_Tax_Was_Abolished_in_FY_2020-21\"><\/span><span style=\"font-weight: 400;\">To Conclude, the Corporate Dividend Tax Was Abolished in FY 2020-21<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">So now you know that the corporate dividend tax was abolished by the Finance Act, 2020, and since FY 2020\u201321, companies are not under a legal obligation to pay Dividend Distribution Tax (DDT).\u00a0<\/span><\/p>\n\n\n\n<p><i><span style=\"font-weight: 400;\">The impact? <\/span><\/i><span style=\"font-weight: 400;\">This change shifted the tax burden into the hands of investors. Dividend income is now 100% taxable in the hands of shareholders under the head \u201cIncome from Other Sources\u201d (without any deduction). Also, TDS is deducted @ 10% if your dividend income exceeds \u20b910,000.\u00a0<\/span><\/p>\n\n\n\n<p><i><span style=\"font-weight: 400;\">Want to move over from equities? <\/span><\/i><span style=\"font-weight: 400;\">You may <\/span><a href=\"https:\/\/goldenpi.com\/\"><span style=\"font-weight: 400;\">visit the GoldenPi platform<\/span><\/a><span style=\"font-weight: 400;\">. Here, you can explore <\/span><a href=\"https:\/\/goldenpi.com\/collections\"><span style=\"font-weight: 400;\">multiple bond collections<\/span><\/a><span style=\"font-weight: 400;\">, such as highly rated bonds, bonds available at a discount, short-term bonds, and more. Further, you can even invest in fixed deposits and <\/span><a href=\"https:\/\/goldenpi.com\/bond-ipo-online\"><span style=\"font-weight: 400;\">apply to the latest NCD IPOs<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Citation\"><\/span><span style=\"font-weight: 400;\">Citation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/incometaxindia.gov.in\/Tutorials\/Tax%20treatment%20of%20dividend%20received.pdf\" rel=\"nofollow\"><span style=\"font-weight: 400;\">Tax treatment of dividend received.pdf<\/span><\/a><span style=\"font-weight: 400;\"> (Income Tax Tutorials)<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Corporate_Dividend_Tax_FAQs\"><\/span><span style=\"font-weight: 400;\">What Is Corporate Dividend Tax? FAQs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1783079857743\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">1. When was DDT removed?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">Dividend Distribution Tax (DDT) was abolished by the Finance Act, 2020. This change became effective from April 1, 2020, that is, from FY 2020\u201321 onward.\u00a0<\/span><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1783079869676\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">2. What is the cut-off date for making \u201cnew investments\u201d to claim a deduction?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">Dividends arising from investments made after January 31, 2026, will not qualify for the earlier interest deduction benefit. Even if the dividend is received in FY 2026\u201327, it must relate to an investment made on or before January 31, 2026, to be eligible.<\/span><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1783079877337\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">3. What is the latest TDS threshold for 2026?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">For FY 2026\u201327, TDS on dividends is deducted @ 10% if the total dividend paid to a resident shareholder exceeds \u20b910,000 in a financial year. The company deducts this amount before payment and reports it in Form 26AS.<\/span><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1783079887674\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">4. How do you report dividend income on your Income Tax Return (ITR)?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">At the time of filing ITR, dividend income must be added to your total income under the head \u201cIncome from Other Sources.&#8221; Also, you must report the total dividend received, not just the amount after TDS deduction.<\/span><\/p> <\/div> <\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Disclaimer:<\/strong><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Bonds or non-convertible debentures (NCDs) are regulated by the Securities and Exchange Board of India and other government authorities. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.<\/span><\/p>\n\n\n\n<p><script type=\"application\/ld+json\"><br \/>\n{<br \/>\n  \"@context\": \"https:\/\/schema.org\",<br \/>\n  \"@type\": \"FAQPage\",<br \/>\n  \"mainEntity\": [<br \/>\n    {<br \/>\n      \"@type\": \"Question\",<br \/>\n      \"name\": \"When was DDT removed?\",<br \/>\n      \"acceptedAnswer\": {<br \/>\n        \"@type\": \"Answer\",<br \/>\n        \"text\": \"Dividend Distribution Tax (DDT) was abolished by the Finance Act, 2020. The change became effective from April 1, 2020, applicable from FY 2020\u201321 onward.\"<br \/>\n      }<br \/>\n    },<br \/>\n    {<br \/>\n      \"@type\": \"Question\",<br \/>\n      \"name\": \"What is the cut-off date for making new investments to claim a deduction?\",<br \/>\n      \"acceptedAnswer\": {<br \/>\n        \"@type\": \"Answer\",<br \/>\n        \"text\": \"Dividends arising from investments made after January 31, 2026, will not qualify for the earlier interest deduction benefit. To be eligible, the dividend must relate to an investment made on or before January 31, 2026, even if received in FY 2026\u201327.\"<br \/>\n      }<br \/>\n    },<br \/>\n    {<br \/>\n      \"@type\": \"Question\",<br \/>\n      \"name\": \"What is the latest TDS threshold for 2026?\",<br \/>\n      \"acceptedAnswer\": {<br \/>\n        \"@type\": \"Answer\",<br \/>\n        \"text\": \"For FY 2026\u201327, TDS on dividends is deducted at 10% if the total dividend paid to a resident shareholder exceeds \u20b910,000 in a financial year. The company deducts the tax before payment and reports it in Form 26AS.\"<br \/>\n      }<br \/>\n    },<br \/>\n    {<br \/>\n      \"@type\": \"Question\",<br \/>\n      \"name\": \"How to report dividend income in your Income Tax Return (ITR)?\",<br \/>\n      \"acceptedAnswer\": {<br \/>\n        \"@type\": \"Answer\",<br \/>\n        \"text\": \"Dividend income must be reported under the head 'Income from Other Sources' while filing the Income Tax Return (ITR). The total gross dividend received should be declared, not just the amount received after TDS deduction.\"<br \/>\n      }<br \/>\n    }<br \/>\n  ]<br \/>\n}<br \/>\n<\/script><\/p>\n\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ready_to_Invest\"><\/span><strong>Ready to Invest?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Visit&nbsp;<a href=\"https:\/\/goldenpi.com\/\">GoldenPi&nbsp;<\/a>to explore current bond options. Compare yields, ratings, and tenures in one place and invest online with as little as \u20b910,000.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disclaimer\"><\/span><strong>Disclaimer:<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities\/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and\/or default in payment. Read all the offer-related documents carefully. This blog\/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products\/services of\/on GoldenPi or any product\/services of its third-party client(s). For a detailed calculation of YTM, visit our website.&nbsp;<a href=\"https:\/\/delivery.goldenpi.com\/XPRBSN?id=162365=ch0GCFVXBVBUH1QDUlZXUlgBVgNSUwJVWgQGDFJQAVsEUwRfBldSBFVUAglRBFJSAA0ZBgxfQFBbERxBFSNTV10FU1cTDBgFDg5OAFIKVVFQBlZTVwQBBgFSAg0aC0BMQRIMFkwBUwoIFVdDHBwCCw1QAAsTWBpSVwgebDYxdmt\/Xl9dHxMF&amp;fl=WRVCSRBfGUkETltfVwNLAxVbCQwNWhpYVkpFGwMOBRcEWQMNUEoHSQJaV1BQAQQHTAZXA1IcAAMOBBxWB1IMFQUEVQxXXAEFBVQEUkpTVlMCUFEHU1JVAwhUAFECAQZaVFEADVAAVQBXVFRUUw==\" target=\"_blank\" rel=\"noreferrer noopener\">T&amp;C\u2019s Apply<\/a>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><\/p>\n<!-- \/wp:paragraph --><style data-type=\"vc_shortcodes-custom-css\"><\/style>\n","protected":false},"excerpt":{"rendered":"<p>Corporate Dividend Tax refers to the taxation of corporate profits distributed to shareholders. In India, the former Dividend Distribution Tax (DDT) paid&hellip;<\/p>\n","protected":false},"author":8,"featured_media":11994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[1026],"tags":[903],"class_list":["post-11898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guide","tag-what-is-corporate-dividend-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is Corporate Dividend Tax? 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