I had purchased Majesco shares a couple of months back and for that, I received a dividend but there was a 7.5% tax deduction on the ammount. What is this 7.5% tax for??
The dividend received from equity shares is subjected to TDS at the rate of 10% (reduced to 7.5% till 31st March 2021) if the dividend amount exceeds Rs. 5000.
You can check this post from @Quicko, for more information: TDS on Dividend paid in FY 2020-21
Thanks.
What’s the point in going for dividend companies if so much tax is involved 
I need to also pay 30% pay on the amount received right? So its total 37.5% tax?
The 7.5% deduction is a TDS(Tax deducted at source) which will be eligible for deduction at the time of actual payment of tax.
This is not an additional tax.
oh ok thanks