Section 115o

This query is : Resolved

Yajuvendra Rawat (Querist)
Follow

24 September 2011 Sirs & Friends,

As per Income Tax Act a domestic company declaring or distributing dividend is supposed to deducted Income Tax (TDS), If suppose the company fails to do so, will such Dividend be taxable in the hands of the received or Shareholder. Please help me to clear my doubts.

Thanking you,

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

24 September 2011 Dividend is an exempted income, {section 10(34}, in the hands of recipient's if company had paid DDT under section 115O. As a corollary, if company doesn't pay DDT, it is taxable in the hands of recipient's.

Yajuvendra Rawat

Yajuvendra Rawat (Querist)
Follow

25 September 2011 Thank you sir for your reply but would like to ask how will a recipient come to know that the company has not deducted tax on the Dividend.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now