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    Question

    Which of the following incomes is fully exempt under

    Section 10 of the Income Tax Act?
    A Dividend Income from a Domestic Company Correct Answer Incorrect Answer
    B Income from House Property Correct Answer Incorrect Answer
    C Long-term Capital Gains on Equity Shares Correct Answer Incorrect Answer
    D Winning from Lottery Correct Answer Incorrect Answer

    Solution

    As per Section 10(34), dividend income from a domestic company is exempt in the hands of the shareholder, as the company pays Dividend Distribution Tax (DDT). However, the law is subject to change; always check the latest Finance Act.

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