Can I claim a deduction of expenses from dividend income?


The Finance Act 2020 provides for the deduction of interest expenses incurred against dividend income. This deduction is applicable to both resident individuals and NRIs, and cannot not exceed 20% of the dividend income received. 

Please note that you are not entitled to claim a deduction for any other expenditure, such as commissions or salary expenses, incurred on earning the dividend income. 

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