Dividend

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2015 if our net profit is 36 lacs.. and we declare a dividend for 7 lacs..

Now on what amount we have to pay income tax i.e., on 36 lacs or on 36-7=29 lacs ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 January 2015 You have to pay income tax on 36 lacs and dividend distribution tax on 7 lacs dividend.

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2015 If dividend tax is paid on 7 lacs totally we pay 40% i.e., 30% Income tax and 10% Dividend tax ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 January 2015 Yes you are right, Dividend tax will be around 20%. The dividend income in the hands of share holder is exempted.

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2015 In a firm , after 30% tax profit share is itself exempted in hands of partners..
but why for a company like this???
but
Sir is that justfied for a company to pay tax 30% and again 20% to distribute dividend??? cuz its totally 50% on income..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 January 2015 You are right higher tax payable in case of company.

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