DYK: Dividend from investing in shares of foreign companies is taxable in India2 min read . Updated: 18 Dec 2015, 01:57 AM IST
Dividend income from foreign companies is not treated the same as dividend from domestic companies, for tax purposes
The two key advantages of investing in equities are the possibility of higher returns and tax efficiency. In the long term, equity has outperformed other asset classes. And, according to Income tax rules in India, capital gains from sale of equity investments after one year of investment are exempt from income tax. Dividends received from owning shares of Indian companies are also exempt from tax in the hands of shareholders. Moreover, investment in equities is not limited to domestic companies; to diversify and also in expectation of better returns, many Indians invest in shares of foreign companies as well.
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