Bank of baroda

BANK OF BARODA
Gazette, specify in this behalf) includes dividend (other than dividends referred to in section 115-O)
received in respect of shares of the Bank, or income by way of Short-Term or Long-Term Capital Gains
arising from the transfer of such securities, the income-tax payable shall be the aggregate of:
a)
the amount of income-tax calculated on dividends at the rate of twenty per cent;
b)
the amount of income-tax calculated on the income by way of short-term capital gains at the rate
of thirty per cent. However, the amount of income-tax calculated on the income by way of short-
term capital gains referred to in section 111A shall be at the rate of ten per cent; and
c)
the amount of income-tax calculated on the income (calculated in the specified manner) by way of
Long Term Capital Gains included in the total income, at the rate of ten per cent.
Further, as per section 196D of the Act, where any dividend income (other than dividends referred to in
section 115-O) is payable to a Foreign Institutional Investor, the person responsible for making the
payment shall, at the time of credit of such income to the account of the payee or at the time of payment
thereof deduct income-tax thereon at the rate of twenty per cent. However, no deduction of tax shall be
made from any income, by way of capital gains arising from the transfer of securities referred to in
section 115AD, payable to a Foreign Institutional Investor.
The above provisions will be further subject to benefits under the Double Taxation Avoidance Agreements,
if any, between India and country in which the non-resident has fiscal domicile.
Under the Wealth Tax Act, 1957:
Shares are not treated as assets within the meaning of Section 2(ea) of the Wealth Tax Act, 1957. Accordingly, shares
purchased in the issue are not liable to wealth-tax in the hands of the shareholders.
Under the Gift Tax Act, 1958:
Gifts of the shares made on or after October 1, 1998 are not liable to Gift Tax.

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