Since the Instituting of the Income Tax Act, 1961, Dividend Income Has Been Taxed In India Under
The Heading of Other Sources. As a Result of the Many Revisions Made Throughout Time, Taxation On
Dividend Income Has Witnessed Considerable Turbulence. the Way Dividends Are Taxed Has Also Changed.
A Dividend Distribution Tax Was Also Imposed on Domestic Corporations Whose Earnings Were Either Now
Being Distributed to Shareholders or Had Accrued In the Previous Year and Were Used to Pay Dividends To
Those Shareholders. However, Recipient Shares Are Now Again Subject to Tax on the Distribution. This
Move Would Have Wreaked Havoc on Both the Stockholders Who Received Their Dividends and the Firms
That Distribute Their Income. from 1997 Through 2020, This Paper Looks at the Tax Treatment of Dividend
Income from Domestic Corporations on Equity Shares In the Hands of Individual Shareholders. Dividends
Are Paid Out to Investors In the Form of Stock or Mutual Fund Shares. Many of Their Stock and Mutual Fund
Assets Pay Out Dividends to Investors. That's Why a Lot of You Are Worried About Whether or Not You'll
Have to Pay Taxes on the Profits You Get from Your Investments. the Taxation of Dividend Income Is Thus
Something That We Should Investigate More.