Amended and updated notes on section 8 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to dividend income.
Chapter II (Sections 4 to 9A) of the Income Tax Act 1961 deals with the provisions related to basis of charge. Section 8 of IT Act 1961-2023 provides for dividend income.
Recently, we have discussed in detail section 7 (Income deemed to be received) of IT Act 1961. Today, we learn the provisions of section 8 of Income-tax Act 1961. The amended provision of section 8 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 8 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-8: Dividend income
For the purposes of inclusion in the total income of an assessee,—
(a) any dividend declared by a company or distributed or paid by it within the meaning of sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d) or sub-clause (e) of clause (22) of section 2 shall be deemed to be the income of the previous year in which it is so declared, distributed or paid, as the case may be ;
(b) any interim dividend shall be deemed to be the income of the previous year in which the amount of such dividend is unconditionally made available by the company to the member who is entitled to it.