- Wealth PMS
In the Budget of 1997, the then Finance Minister P. Chidambaram abolished taxation of dividends in the hands of the shareholder and instead enacted the Dividend Distribution Tax where he would levy a tax on the company that is distributing profits, at 10 per cent. As an Individual tax payer, it is easy for you to forget to include income from dividends, especially if you are not a large tax payer. For the tax department, it's expensive to try and haul you up . . .