TDS on dividend issued by PVt co

This query is : Resolved

Rajeswar (Querist)
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10 November 2010 Dear members
A private limited company wants to issue dividend to its shareholders.
Will these dividends come u/s 115-O of the Income Tax Act which are subject to Dividend Ditribution Tax and hence no TDS need to deducted?
or
Should the company pay dividend after deducting 10% TDS as per Sec 194 of the Income TAx Act ?
Kindly clarify
thanks & regards

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 November 2010 These dividends come u/s 115-O of the Income Tax Act which are subject to Dividend Ditribution Tax and hence no TDS need to deducted

Rajeswar

Rajeswar (Querist)
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10 November 2010 Will not the above dividend be considered as deemed dividend u/s 2(22)e of IT Act?

Kinldy clarify me

taxindiaconnect

taxindiaconnect (Expert)
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10 November 2010 it is not deemed dividend, provision of section 2(22)e do not apply in this case.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 November 2010 It is normal dividend and not deemed dividend. In deemed dividend loan given to majority shareholder is treated as deemed dividend.

Rajeswar

Rajeswar (Querist)
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16 November 2010 Thank u very much for the clarification

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