Section 10(34)
Exemption of Dividend Income
Quick Answer
Section 10(34) (Exemption of Dividend Income) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 10(34)
Provision Summary
Dividends declared by a domestic company were exempt in the hands of the shareholder (as the company paid Dividend Distribution Tax - DDT).
Deleted
Provision Summary
NA. Completely deleted. The classical system of taxation is back; dividends are now fully taxable in the hands of the recipient.
Key Changes & Highlights
- DDT abolished. Dividend taxed at slab rates.
Related Sections
Frequently Asked Questions
What does Section 10(34) of the Income Tax Act 1961 deal with?
Section 10(34) (Exemption of Dividend Income) Dividends declared by a domestic company were exempt in the hands of the shareholder (as the company paid Dividend Distribution Tax - DDT).
Is Section 10(34) of the ITA 1961 still applicable under DTC 2025?
Section 10(34) has been deleted under the Direct Tax Code 2025. NA. Completely deleted. The classical system of taxation is back; dividends are now fully taxable in the hands of the recipient.
What is the status of Section 10(34) under the new tax code?
Section 10(34) is marked as "Deleted" with status "Deleted". Impact: Critical - Historical context for the shift in corporate taxation.
What are the key changes to Section 10(34) under DTC 2025?
DDT abolished. Dividend taxed at slab rates.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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