Dividends and inter corporate dividends transfer


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Querist : Anonymous

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Querist : Anonymous (Querist)
14 March 2010 Could an expert tell me the tax implications of dividends and intercorporate dividends transfer in India?

15 March 2010 After declaring a dividend the payer of dividend has to pay the dividend distribution tax. The receiver is exempted from paying tax on dividend received by him.

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Querist : Anonymous

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Querist : Anonymous (Querist)
15 March 2010 Thank you Mr. Srinivasulu.
My next query is by declaring and paying dividend does the company get any relief from taxation? Or payment of dividend toshareholders simply makes no difference in its overall tax incidence?

15 March 2010 No relief from taxation. If you are not declarin dividend your tax is saved to the extent of dividend tax.


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