Founder - Shubham Anand & Co Chartered
73 Points
Posted on 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.