Only Dividend under Section 2 (22) ( e) covered here.

TDS Rate is 10%

Cutoff is Rs 2500



No TDS under Section 194 in case

Payment to individual shareholder


Amount of dividend is upto 2500


Dividend is paid by an account payee cheque.


The TDS provisions will not apply to dividend receivable by LIC, GIC, its subsidiaries or any other insurer provided the shares are owned by them, or they have full beneficial interest in such shares.





Dividend under Section 2 (22) (a) to (d) not covered here as Dividend distribution tax is applicable on it.

  1. Income Tax
  2. Tax Deducted at Source (TDS)

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.