Section 194 — TDS on Dividend

# Section 194 — TDS on Dividend

## Who deducts?

• Payer: Domestic Company distributing dividend.
• Payee: Resident shareholder.

## When?

At the time of payment (not credit). Includes dividend paid in cash or otherwise.

## Threshold

Dividend paid (other than in cash) > ₹10,000 p.a. per shareholder.

## Rate

10%.

## Note

• Applies to all dividends — interim, final and deemed dividend u/s 2(22).
• Bonus shares are not 'dividend' for Sec 194 purposes.