Dividend Income for NRIs under Section 115A
Section 115A of the Indian Income Tax Act, dividend income received by Non-Resident Indians (NRIs) from Indian companies is fully taxable in India. This applies to dividends declared, distributed, or paid on or after April 1, 2020. The income is taxed at a flat rate of 20% (plus applicable surcharge and cess) without any deductions. Companies paying dividends must deduct Tax at Source (TDS) at this rate.