Up to Assessment Year 2020-21, if a shareholder gets a dividend from a domestic company, then he shall not be liable to pay any tax on such dividend as it is exempt from tax under section 10(34) of the Act. However, in such cases, the domestic company is liable to pay a Dividend Distribution Tax (DDT) under Section 115-O.
But after Finance Act, of 2020, DDT has abolished the DDT and moved to the classical system of taxation wherein dividends are taxed in the hands of the investors. So, Yes assessee needs to pay tax on dividend income.