How much Dividend taxable

Income Tax Income from Business or Profession
1

I am salaried person, gross income 10 lakh and comes in individual resident category. I invested in share market and also get dividend 8000. But i am confused that how much dividend amount is tax-free in below options:

  1. TDS will be deducted at 10% on dividends received above INR 5000.

  2. Tax of 10% on dividend income in excess of Rs. 10 lakh per year.

so which option is correct for current FY and option 2 is applicable to whom ?

2

A post was merged into an existing topic: I am receiving emails for TDS on dividend payment from Companies. Why is TDS applicable on dividend?