Dividend Income

Tax Glossary Definition

Dividend Income

Dividend Income – Dividend income is the share of a company’s profits distributed to its shareholders, typically paid in cash or issued as additional shares. It represents the shareholder’s earnings from equity investment and is generally taxable under relevant income tax provisions.

Example: If an investor owns 1,000 shares and the company declares a dividend of ₹10 per share, the investor will receive ₹10,000 as dividend income.

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