Dividend distribution tax under sec 115-o

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This query is : Resolved

Shweta Kamdar (Querist)

08 August 2013 Can public company which is not listed, declare dividend to its Promoters? and what will be compliance of its from the income tax, law n receiver point of view? its urgent please reply

Rupesh Jain

Rupesh Jain (Expert)

08 August 2013 company declare dividend to all shareholders not the parts of shareholders in AGM and deduct the tds on dividend

and receiver's dividend not taxable income for him

Shweta Kamdar

Shweta Kamdar (Querist)

08 August 2013 Thank You Sir 4 ur reply but i didnt understood the TDS Part n company does not have shareholders it has promoters since it is not listed.

Shweta Kamdar

Shweta Kamdar (Querist)

08 August 2013 If possible can u explain it in brief.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

09 August 2013 Dividends are declared to shareholder only and not to promoters.
Promoters may also be shareholders and they can receive dividend.
Div paying company if pays div distribution tax u/s 115-0 then shareholders are exempted from paying any tax as per provisions u/s 10.

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