INCOME TAX · PRIVATE LIMITED COMPANIES
Dividend Tax: What the Company and Shareholder Must Do
Understand gross dividend reporting, TDS credit and inter-company dividend relief.
By Vyapar Setu Online | Private limited companies · 28 October 2026
Business Income Tax series · Private limited companies · Article 5 of 27
A dividend is money distributed to a shareholder out of company profits. The company may already have paid corporate tax, but the shareholder can still have a separate income-tax liability.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
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For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.
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