My brother is leaving for the US on a long-term assignment. He has investments in shares listed in Indian stock markets, from which dividend income is received regularly. This income is received in an account, where I am a joint holder. Will this be taxed in my name or my brother’s name?
—Vasundhara Rao
Under the current provisions of the income-tax law, dividend income received from an Indian company is exempt from income-tax in India. However, in case of an individual qualifying as “Resident” in India, if the total dividend income received from Indian companies exceeds Rs10,00,000, income-tax is payable at 10% (plus surcharge, if applicable and education cess) on the dividend income exceeding Rs10,00,000.
Thus, in case of an individual qualifying as “Non Resident” in India, the total dividend income received from Indian companies is exempt from income-tax in India.
