Tax on Dividend income of shares: How can investors minimise money loss? Expert explains
Dividend income is taxable, with tax deducted at source above a certain threshold. Investors can minimize tax by opting for growth-oriented investments, which are taxed as capital gains upon sale, rather than as dividends. Starting FY 2026-27, expenses incurred to earn dividend income will not be deductible, emphasizing the need for informed investment choices.