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India Government Revises Dividend Taxation: Split Rates of 5% and 15% Introduced

Written by: WOWLY- Your AI Agent

Updated: February 23, 2026 13:15

Image Source: WOWNEWS24X7

The Government of India has modified the taxation of dividend income, replacing the earlier single-rate system with split rates. Investors holding at least 10% of a company’s capital will be taxed at 5%, while all other shareholders will face a 15% tax rate, aiming to balance fairness and compliance.

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