Dividend stripping
This query is : Open
10 December 2011
what is dividend stripping? Please tell me in detail.
10 December 2011
Dividend stripping involves buying a stock cum-dividend just before it goes ex-dividend.
Shares are sold after becoming ex-dividend, so as to take the advantage of dividend as well as to book ST capital loss or business loss. Such loss arises due to the fact that shares usually fall ex dividend by the amount of the dividend.
Restriction has been put by section 94(7) on claiming of such loss to the extent of dividend received. You may refer the section for more details.
Shares are sold after becoming ex-dividend, so as to take the advantage of dividend as well as to book ST capital loss or business loss. Such loss arises due to the fact that shares usually fall ex dividend by the amount of the dividend.
Restriction has been put by section 94(7) on claiming of such loss to the extent of dividend received. You may refer the section for more details.
14 December 2011
ok...thanks but is this dividend exempted or taxable...?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- 44AD VS 44AB AUDIT
- Correction in TDS return New Traces Portal
- Computation of Dividend
- Query Regarding Refund Adjustment Against Outstanding Demand
- TDS Intimation(Short Deduction)
- OTP ISSUE XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
- Mode of payment of Tax
- TDS Return processing
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Custom Morale Hat Patches UK
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
