Section 54 : Tax in dividend:
1) On the dividend distributed by a resident body, it shall be as follows:-

a) 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 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), in cases where in distributing a dividend by a resident company to another resident company, except for a dividend distributed by a resident company to an organization enjoying tax exemption, the resident company receiving the dividend controls twenty-five per cent or more voting right of the resident company distributing the dividend, directly or indirectly through itself or one or more associated entities, no tax shall be charged on the dividend distributed to such a resident entit

4) Notwithstanding anything contained in Sub-section (3), that Sub-section shall not be applicable in the following circumstances:-

a) Dividend distributed to any company because of ownership of redeemable shares of the company distributing dividend.

b) Dividend referred to in Section 58.

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 need not to be included.