Vikas, a resident in India, has received dividend of ₹ 13 lakhs from A Ltd., an Indian company, on which the company has paid DDT under section 115-O of the Income-Tax Act, 1961. He has incurred expenditure of ₹ 1 lakh f

As per section 115BBDA, where a resident shareholder, being an Individual, HUF or a Firm, receives dividends in excess of ₹ 10 Lakhs from Indian Company / Companies on which dividend distribution tax has been paid u/s 115-O, exemption u/s 10(38) will only be available upto ₹ 10 lakhs and excess amount will be charged to tax @ 10% plus education cess. No deduction will be allowed for any expenditure incurred in respect of earning such dividend income. Thus, in the given case, amount exempt u/s 10(38) is ₹ 10 lakhs only and on the balance amount of ₹ 3 lakhs, tax payable is ₹ 300000 * 10.30% = ₹ 30900.