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The Tax Publishers Tax Provisions 1. Dividends, income from units of mutual funds (a) Dividends from domestic company if declared, distributed or paid on or after 1-4-2003 but upto 31-3-2020 is exempt in the hands of receipient thereof. (b) Income from units of mutual funds specified under section 10(23D), UTI-I and UTI-II is exempt if received on or after 1-4-2003 but upto 31-3-2020. No exemption in respect of income by way of transfer of such units. (c) Section 115BBDA upto assessment year 2020-21 provides that in case of any resident assessee except: (i) a domestic company; or (ii) a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or (iii) a trust or institution registered under section 12A or section 12AA or section 12AB. dividend declared, distributed or paid by domestic company exceeding in aggregate Rs. 10 lakhs shall be taxed at rate of 10 per cent plus surcharge and cess as applicable. The Finance Act, 2020 has amended the law to tax the dividend from domestic company/mutual funds in hands of receipient without any examption limit if such dividend declared, distributed or paid on or after 1-4-2020 other than the dividend on which tax under section 115-O and section 115BBDA, wherever applicable, has been paid. 2. Direct deduction out of gross total income in respect of investment in specified media [Section 80C] Direct deduction under section 80C is allowed out of gross total income if the assessee makes investment in certain specified media. Deduction under section 80C is allowed in an amount equal to Rs. 1,50,000 or amount actually invested, whichever is lower. For a detailed discussion refer to Section D of the book. 3. Deduction in respect of contribution to certain pension funds [Section 80CCC] (i) Eligible assessees Individuals only. (ii) Condition as to payment Payment towards annuity plan referred to in section 80CCC shall be made by the assessee out of his income chargeable to tax. (iii) Eligible investment Amount paid or deposited excluding interest or bonus accrued or credited to the assessees account to effect or keep in force a contract of annuity plan of Life Insurance Corporation of India or any other insurer for receiving the pension from the fund referred to in clause (23AAB) of section 10. (iv) Quantum of deduction Amount paid or Rs. 1,50,000, whichever is less, shall be eligible to deduction. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

1. Dividends, income from units of mutual funds

(a) Dividends from domestic company if declared, distributed or paid on or after 1-4-2003 but upto 31-3-2020 is exempt in the hands of receipient thereof.

(b) Income from units of mutual funds specified under section 10(23D), UTI-I and UTI-II is exempt if received on or after 1-4-2003 but upto 31-3-2020. No exemption in respect of income by way of transfer of such units.

(i) a domestic company; or

(ii) a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or

(iii) a trust or institution registered under section 12A or section 12AA or section 12AB.

dividend declared, distributed or paid by domestic company exceeding in aggregate Rs. 10 lakhs shall be taxed at rate of 10 per cent plus surcharge and cess as applicable.

The Finance Act, 2020 has amended the law to tax the dividend from domestic company/mutual funds in hands of receipient without any examption limit if such dividend declared, distributed or paid on or after 1-4-2020 other than the dividend on which tax under section 115-O and section 115BBDA, wherever applicable, has been paid.

2. Direct deduction out of gross total income in respect of investment in specified media [Section 80C]

Direct deduction under section 80C is allowed out of gross total income if the assessee makes investment in certain specified media. Deduction under section 80C is allowed in an amount equal to Rs. 1,50,000 or amount actually invested, whichever is lower. For a detailed discussion refer to Section D of the book.

3. Deduction in respect of contribution to certain pension funds [Section 80CCC]

(i) Eligible assessees

Individuals only.

(ii) Condition as to payment

Payment towards annuity plan referred to in section 80CCC shall be made by the assessee out of his income chargeable to tax.

(iii) Eligible investment

Amount paid or deposited excluding interest or bonus accrued or credited to the assessees account to effect or keep in force a contract of annuity plan of Life Insurance Corporation of India or any other insurer for receiving the pension from the fund referred to in clause (23AAB) of section 10.

(iv) Quantum of deduction

Amount paid or Rs. 1,50,000, whichever is less, shall be eligible to deduction.