Section 54 : Tax in dividend

1) On the dividend distributed by a resident body, it shall be as follows:-

a) If the dividend is distributed to the shareholder of any company or partner of any partnership firm, tax shall be imposed on a shareholder of any company as per the mode of final tax deduction and

b) No tax shall be imposed on distribution, if any, made by other entities.

2) The dividend distributed by any non-resident person to any resident beneficiary shall be included in the income of the beneficiary and tax imposed accordingly.

3) Notwithstanding anything contained in sub-section (1), no tax shall be levied on the dividend received after tax deduction if it is distributed.

¹4) ………………………..

5) The incomes referred to in Chapter 8 receivable for the interest of a beneficiary of an entity have to include the amount for capital return made by any entity for that interest.

Provided that the dividend distributed by the entity is not required to be included.

^{1 Removed by the Financial Act, 2075.}