Section 10 34

31 cfr 10 34 standards with respect to tax returns and documents affidavits and other papers.

Section 10 34. The section 10 34 of the income tax act 1961 involves domestic companies. 10 34 practitioner standards must advise client of opportunities to avoid penalties through disclosure and the requirements for an adequate disclosure may rely in good faith without verification upon information furnished by the client must make reasonable inquiries if information received or assumptions. The tax is levied on the dividend distributing company.

Definition of section 10 34 as per section 10 34 of the income tax act dividend income is exempt from the income act referred to in section 115 o. The income tax department never asks for your pin numbers passwords or similar access information for credit cards banks or other financial accounts through e mail. Also income chargeable under section 115bbda is untouched from section 10 34 that is income will be taxable as per the provision of the section 115bbda of income tax act.

Since dividends distribution tax has already paid by the company the same therefore becomes exempt in the hands of the shareholders. The income tax department appeals to taxpayers not to respond to such e mails and not to share information relating to their credit card bank and other financial accounts. The objective of section 10 of the income tax act is to reduce the burden of the different structure of the tax such as rent allowance allowance for children education travel allowance gratuity and so on.

Section 10 34 simply states the following two things 1. Thus dividend received during the financial year 2020 21 and onwards shall now be taxable in the hands of the shareholders. Provisions of section 10 34a exempt any income arisen to the shareholder on account of buy back of shares as referred under section 115qa of the income tax act.

Dividend income referred in section 115 o is exempted under section 10 34. Section 10 34 refer to the dividends received by a person from a company which has already paid a dividend distribution tax on the dividend being distributed to its shareholder. Standards with respect to tax returns and documents affidavits and other papers.

They are exempted to pay tax on dividend income as per the section. Logically the exemption is done to avoid double taxation. Section 10 34 which provides an exemption to the shareholders in respect of dividend income is withdrawn from assessment year 2021 20.