Hi,
When we receive dividend, do we need to pay tax?? if yes, @ what % of tax do we need to pay?
Manjunath G (N) (37 Points)
20 January 2010Hi,
When we receive dividend, do we need to pay tax?? if yes, @ what % of tax do we need to pay?
swajitha
(ca..final)
(68 Points)
Replied 20 January 2010
we need not pay tax wen we recieve divend as tax is paid by the company....it is applicable in the case of indian company...in case divend is recieved from foreign co then it is taxable under the head income from other sources
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 21 January 2010
| Originally posted by : swajitha | ||
 |
we need not pay tax wen we recieve divend as tax is paid by the company....it is applicable in the case of indian company...in case divend is recieved from foreign co then it is taxable under the head income from other sources |  |
agree wid Swajitha...
C.Balaji
(Learner)
(1867 Points)
Replied 21 January 2010
completely agree with Swajitha...
Dividend received from Domestic companies is exempt from tax - 10(34)
Dividend received from Foreign company is taxable under IFOS
Atul Kumar
(working employee)
(153 Points)
Replied 21 January 2010
do argree with the above facts. dividend not taxable if u received from domestic company
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 21 January 2010
When u receive dividend from a indian company.....they already paid Dividend Distribution Tax and thats y when it is received by the shareholders it is exempted in their hands
CA. Shubham Anand
(Founder - Shubham Anand & Co Chartered Accountant)
(73 Points)
Replied 21 January 2010
As per Income Tax Act 1961, any dividend received by a domestic company is exempt under section 10 in the hand of receiver.
The above dividend is comes under section 115-0 of the Income Tax Act.In that case domestic Company is required to pay CDT(Corporate dividend Tax @ 15% plus Cess and Surcharge), thats why this dividend is exempt in the hands of receiver because it is already tax in Comapnies hand.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 21 January 2010
dividend received from indian co. is exempt u/s.10(34). i mean the dividend u/s.2(22)(e)
CA RAJENDRA PANDEY
(ACA B. Com AMFI NCFM NISM)
(327 Points)
Replied 21 January 2010
Tax is payable only when it is deemed dividend U/s 2
Rajan
(Article)
(25 Points)
Replied 21 January 2010
As per Income Tax Act 1961, any dividend received by a domestic company is exempt under section 10(34) in the hand of receiverThe above dividend is comes under section 115-0 of the Income Tax Act.In that case domestic Company is required to pay CDT(Corporate dividend Tax @ 15% plus Cess and Surcharge)i.e 16.995% so co hav pay tax on it so it ios exempt in the hand of asseesse.no double taxation in india
but if is from foreign co than taxable under head ifos
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