Dividend received from company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2012
pls. tell me whether company formed by a relative in which they are directors getting remuneration of rs. 160000/- for which they don't pay any tax (as basic exemption) and they himself declare dividend in the company and receive dividend from company. so i want to know whether this is allowed. because to avoid tax they dont charge high remuneration but collect it in the form of dividend.
pls, reply me
.
pls, reply me
.
06 January 2012
A company has to pay Div. Distribution Tax
also @ 15%.
.
Dividend depends upon the No of shares held.
It is declared after paying taxes.
.
In such a case, company has to pay Income Tax on its Profits also.
.
DDT+IT = 50% of the Profit.
.
It clearly shows that -there is something out of your notice.
also @ 15%.
.
Dividend depends upon the No of shares held.
It is declared after paying taxes.
.
In such a case, company has to pay Income Tax on its Profits also.
.
DDT+IT = 50% of the Profit.
.
It clearly shows that -there is something out of your notice.
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