Taxability of dividend
This query is : Resolved
Ninad Pandit
(Querist)
12 October 2011
WHAT IS THE TAXABILITY OF DIVIDEND RECEIVED BY PARENT COMPANY(INCORPORATED IN INDIA) FROM ITS SUBSIDIARY COMPANY(ALSO INCORPORATED IN INDIA) ?? THE SUBSIDIARY CO. HAS PAID DIVIDEND DISTRIBUTION TAX...
12 October 2011
TO mitigate the cascading effect of dividend distribution tax upto one level w.e.f 1/4/08, DDT will be calculated:
16.60875 (dividend paid,declared or distributed by the assessee company(domestic company) - dividend received during the year from its subsidiary company).
The following conditions need to be satisfied to claim the credit:
1.Subsidiary Company has paid DDT u/s.115O 2.It is subsidiary to the only said holding company.
3.DDT is not already taken credit.
16.60875 (dividend paid,declared or distributed by the assessee company(domestic company) - dividend received during the year from its subsidiary company).
The following conditions need to be satisfied to claim the credit:
1.Subsidiary Company has paid DDT u/s.115O 2.It is subsidiary to the only said holding company.
3.DDT is not already taken credit.
Ninad Pandit
(Querist)
12 October 2011
so, will the dividend income recd by parent co from its subsidiary co be exempt from tax?
CA MANOJ GUPTA
(Expert)
12 October 2011
DIVIDEND RECD WILL BE EXEMPT IN THE HANDS OF PARENT CO
CA MANOJ GUPTA
JODHPUR
09828510543
CA MANOJ GUPTA
JODHPUR
09828510543
Ninad Pandit
(Querist)
13 October 2011
THANK YOU FOR THE VALUABLE REPLY
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