Money Guru: What Are The Tax Rules On Dividend Income? How Much TDS On Dividend Income?

Dividend distribution tax is no longer levied on dividend earnings, but TDS is deducted on it. If the dividend exceeds ₹ 5 thousand, the company will deduct 10% TDS. Senior citizens can avoid TDS deduction by submitting Form 15H. Income less than ₹ 2.5 lakh can avoid TDS deduction by submitting Form 15G. Selling mutual funds will attract 10% tax on long term. No tax on capital gains up to ₹1 lakh: Sunil Garg, Tax Expert