Hi @Bharathi_Devarasu @Double_hammer @Ashish_Krishna_K,
In Budget 2020, Dividend Distribution Tax(DDT) is abolished. As an effect to that now Dividend Income will be taxable in the hands of a resident taxpayer at a slab rate.
From FY 2020-21 onward there will be TDS deduction @10% on Equity Dividend u/s 194 if dividend income is more than INR. 5,000. And TDS deduction @10% on Mutual Fund Dividend u/s 194K if dividend income is more than INR. 5,000.
To clarify it further, Up until FY 2019-20, domestic companies will be paying DDT and hence the same will not be taxed in the hands of a shareholder to avoid double taxation of income. But from FY 2020-21, due to abolishment of DDT, no tax will be deducted by the domestic companies. Hence to tax dividend income TDS will be introduced on dividend from Equity and Mutual Fund.